NEW SSS MEMBER LOAN PENALTY CONDONATION PROGRAM FOR INDIVIDUAL MEMBERS FREQUENTLY ASKED QUESTIONS 1. Can a member apply for the program thru the web? Ans. Yes, as soon as the Member Services Division completes the enhancement. We will announce to all the branches the date when this will be available thru the web. 2. Can a member send a representative to file an application in his behalf? Ans. Yes, a space for authorized representative is provided for in the Application Form, subject to requirements for identification. 3. Can a member‐applicant wait for the approval of the application for condonation at the counter? Ans. Yes. 4. Will the Program under Situation 1a accept a pay slip/envelope showing deduction made even after the amortization period of the loan? Ans. Yes. 5. Can the Account Officer administer the oath/affidavit of member‐applicant in lieu of the notarized affidavit as required under Situation 1a? Ans. Yes. 6. Will the Program allow an employee whose employer did not deduct the outstanding loan obligation from his separation/retirement benefits which is required under the SSS Salary Loan Program? Ans. No. The separated/retired employee was aware that his salary loan balance was not deducted from his benefits. He should have continued paying his loan on his own.
7. What is the maximum term of installment? Ans. 3 years but the maturity date of the installment plan shall not exceed age 65. 8. Are post‐dated checks required for installment payments? Ans. No. Postdated checks are not required in this Condonation Program. 9. If the employee filed an application for condonation and paid the required amount and at the same time, the employer paid the loan amortization, will the excess payment be refunded and to whom shall it be refunded? Ans. Yes, a refund is always paid to the employee upon request. 10. If an employee has more than one loan account, that is, salary, calamity or emergency and only one loan account has at least 3 amortization payments, will the other loans qualify under the program? Ans. No, only the loan with at least 3 amortization payments shall qualify under the program. 11. Will a member be allowed to pay in full after 12 months even if his installment term is 36 months? How much is the rebate on interest and what is the renewal date? Ans. Yes. The member may fully pay anytime during the installment period. However, there will be no rebate on interest as the basis for payment is the outstanding principal balance at any given time. Also, a member may renew his loan 3 years from the date of full payment. 12. If a member has completed the required 120 monthly contributions for retirement, but lacks the required 3 monthly contributions for the last 6 months prior to application for penalty condonation, will he qualify under the Program? Ans. Yes, he may qualify by paying the required 3 monthly contributions for the last six months. But the member should be aware of the effect of updating his contributions since his pension will start accruing after the last posted contribution. 13. Will the Program accept Death/Disability/Retirement (DDR) application filed beyond availment period under Situations 1b and 3, even if the requirements are not yet satisfied due to internal verification process? Ans. Yes, if the cause of delay is internal to SSS.
14. If a member/beneficiary files a retirement/disability/death claim, will he still file an application for the condonation program? Ans. Yes. 15. If a member is due for retirement in February 2012, can he postpone filing of application for retirement in order to avail of the Program? Ans. Yes. The program covers members whose applications for retirement will be filed from 02 April 2012 to 30 September 2012, regardless of date of contingency. 16. If the Death/ Disability/ Retirement application is refiled after the availment period due to compliance by the member of certain requirements, is he qualified to avail of the Program since his initial filing was made during the availment period? Ans. No, because the filing date in Death, Disability and Retirement database will be automatically replaced by the refiling date. 17. Will the Program allow a member to avail and deduct partial payments from his monthly pensions? Ans. No, the total outstanding loan balance is deducted in full from the retirement benefits. 18. Will a member who is about to retire/file a total disability claim qualify under Situation 1a since his employer deducted loan amortization from his pay/salary but did not remit to SSS.? Ans. Yes. He will also file application for condonation first, subject to full payment prior to filing of retirement so that the penalties to be waived is 100%. Otherwise, if under Situation 3, only 50% of penalties is waived. 19. Is automatic condonation availment given to the beneficiaries who will apply for death claim? Ans. No, the applicant shall fill up application for condonation and this shall be attached to his death claim application. 20. Was there a cost‐benefit analysis before the program was conceptualized? Because it seem the SSS always forego its income on salary loan investment. Ans. The primary aim of the SSS is to be able to collect the principal obligation of the borrowers.
21. Will members who have no prior knowledge of the program and learn about it beyond availment period be allowed to request for reconsideration? Ans. No, they shall not be allowed to request for reconsideration. 22. If mode of payment is on installment basis and the borrower defaults in the payment of the scheduled monthly amortization, what sanctions shall be imposed by the SSS? Ans. A member‐applicant who defaults in the payment of the scheduled monthly amortization of his restructured loan results in the following: • Termination of the member‐applicant’s approved installment plan; • Re‐imposition of accrued penalties on the loan in proportionate amount; • Entire loan becomes due and demandable; • Total loan obligation shall be deducted from the member’s future benefits; • Permanent suspension of member’s loan privileges 23. Why do we require that the 3 monthly amortization be posted to qualify a member‐applicant under situation 2? Ans. The 3 monthly amortization should be posted to enable SSS to compute an updated statement of account of the member‐applicant.