Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Penalty Condonation Program

6,042 views

Published on

For emloyers who are delinquent in the remittance of their employees' loan amortizations

Published in: Education
  • how about the members record in the year 1973 to 1980? how can i search my contributions? my sss number is 03-300-00-152. i want to know my sss contributions up to the year 1982.
    First Employment : Ice and Cold Storage Corporation
    Second Employment: Melanie Taxi Incorporated
    Third Employmet: Federal Essential Servecis
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • how about those employers who are delinquent in paying their own & their employees' contribution, can they still settle their accounts by submitting installment proposal?
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Penalty Condonation Program

  1. 1. SOCIAL SECURITY SYSTEM Y M CIRCULA NO. 2010-005 AR TO: OYERS ALL EMPLO SUBJECT: GUIDELINE FOR THE CONDONA ES E ATION OF PENALTIESS FOR UNREMITT TED OR DELINQUENT LOAN AMORTIZAT A TIONS OF EMPLOYEE BY EM ES MPLOYERS DUE ON OR BEFOR 01 APRIL 2010 RE L Pursuant to the implementation of the Contribution P Penalty Cond P donation Proggram for Emp ployers, and the approval of the Penal Condonati t lty ion Program for f Unremitted or Delinque Loan Amo ent ortizations of Employees b Employers by the Pres E by s sident of the Philippines on 03 June 20 P 010, as recom mmended by the Social Security Commission (S t SSC) under Resolution No. 238-s.2010 dated 25 M R March 2010, t following guidelines an procedures are hereby the nd s issued: or com i mplicated term ms. WHAT ARE T W THE TERM AND MS WHO CAN AVAIL OF THE PRO N F OGRAM CO ONDITIONS • Employers who are delin s nquent in the r remittance of 1. The Program shall apply only to pe m y enalties on their employees' loan amortizations, including the a un nremitted or delinquent loan am r t mortizations following: (pr rincipal and interest) due on or befor 01 April re 2010. • Those with pending or ap h pproved proposal under the Int terest is compu uted based on the interest r n rate of 10% Installment Payment Sch t heme of the SS SS per annum. It is defined as the amount due on the loan e • Those with pending or approved application under h a until its full settle ement. In case of the expiry of the two- e the Progra for Accepta am ance of Prope erties Offered year loan amortiz zation period, interest is com mputed from through Da acion en Pago of the SSS; an nd such date up to the filing of ap pplication for c condonation under this Progra am. • Those with pending cases before the SSC, Courts h or the Offic of the Prose ce ecutor. enalties on loa amortizatio Pe an ons falling due thereafter e shall not be cove ogram but shall be paid as ered by the Pro • Employers with s emp ployees with delinquent pre escribed under existing guide r elines. loans/arrea ars. • Employers who are also delinquent in the payment s of their S SSS contributioons must first settle their t 2. Period of the Program delinquent contributions in full through outright s Avvailment of the Program is w e within six (6) m months from payment o submission of an installm or ment proposal the issuance of th correspondi office issua e he ing ances. under the SSS Condona ation Law of 20 (R.A. No. 009 9903) ww ww.sss.gov.ph | SSS Main Building, Eas Ave. Q.C. | phone 917.7777 | Trunklin 920.6401 h st ne
  2. 2. 3. Restoration of loan privileges Upon remittance of the delinquent loan amortizations in full or approval of the installment proposal of the employer under this Program, the short-term member loan privileges of their employees shall be restored, subject to the existing guidelines on salary loan granting. However, said privileges shall again be suspended in the event of violation of any terms and conditions hereof. 4. Loan amortizations paid before effectivity of the program Employers who settled all their loan amortization arrears before the effectivity of the Program shall not have their past penalties waived and refunded. Since application of payments is to penalty and interest first, payments to penalties can no longer be waived which differs from policy on contribution where payments are applied to principal first. Those who settled their arrears partially before the effectivity of the Program should pay the balance in full or in installment under the Program for their accrued penalties corresponding to said remaining arrears to be waived. 5. Effect on pending or approved proposals under the Installment Payment Scheme of the SSS Upon remittance of the delinquent loan amortizations in full or approval of the installment proposal of the employer under this Program, a pending or approved proposal submitted under other rules issued by the SSC allowing employers to pay their delinquencies in installment shall be considered withdrawn and the corresponding post-dated checks submitted shall be returned. 6. Effect on pending or approved application under the Program for Acceptance of Properties Offered through Dacion en Pago of the SSS Upon remittance of the delinquent loan amortizations in full or approval of the installment proposal of the employer under this Program, a pending application submitted under other rules issued by the SSC allowing employers to settle their delinquencies through dacion en pago shall be considered withdrawn. Further, upon submission of an installment proposal by an employer under this Circular, an approved dacion en pago application submitted under such other rules shall be considered annulled if the title of the property has not been transferred yet to the SSS. 7. Effects of failure to remit or default in installment In case the employer fails to remit in full the required delinquent loan amortizations or defaults in the payment of any installment under the approved proposal within the period provided therein, the penalties are deemed re-imposed on the remaining balance of the amount due after payments made under the approved installment proposal under this Condonation Program has been considered, to accrue until the delinquent account is paid in full. HOW TO AVAIL OF THE PROGRAM Modes of Availing the Program 1. An employer has the following modes of availing the Program: • Remit within the period of the Program the full amount of delinquent loan or portion in arrears through any SSS Branch with tellering facility or authorized collection agent of the SSS; or • Submit a proposal within the period of the Program to pay the delinquent loan amortizations in installment to the SSS Branch having jurisdiction over its place of business. In any case, the employer shall first secure a loan delinquency report from its servicing branch for reconciliation and confirmation, and as basis for payment. Upon payment or submission of an installment proposal, it shall also submit the corresponding Collection List (SS Form ML-2) within the period of the Program.
  3. 3. 2. Installment Proposals If the employer opts to submit an installment proposal, the Head of the SSS Branch to which the proposal was submitted shall give due course to approve and grant the same within five (5) working days from date of submission, subject to the following requirements: • Together with the proposal, the employer shall submit an instrument promising to pay the balance of the delinquency in equal monthly installment within a period not exceeding twenty-four (24) months from the date of the approval of the proposal; • The first monthly installment shall fall due on the 10th day of the succeeding month after the approval of the proposal. • The installment payments shall bear an interest of three percent (3%) per annum based on a Schedule to be issued by the SSS (Annex A). • If the employer is an association, partnership, corporation or any other institution, its managing head, director or partner shall sign the proposal and the promissory note, attaching therewith the Secretary’s Certificate in case of a corporation or an equivalent instrument in case of an unincorporated employer, authorizing such officer to sign the proposal on behalf of the employer. • In case the employer has already ceased its operations, its managing head, director or partner shall sign the proposal and the promissory note in his personal capacity. 3. Post-approval Requirements Upon approval of the proposal, the employer has the following obligations: • It shall issue the corresponding post-dated checks payable to the SSS to cover all monthly installments, and cause the replacement thereof whenever necessary (e.g., change in check signatory, closure of account). The employer shall issue a separate set of post-dated checks payable to SSS if the employer also has an approved installment proposal under the SSS Condonation Law (R.A. No. 9903). • It shall remit current loan amortizations of its employees every month as they fall due. Failure by the employer to comply with the above requirements shall automatically terminate the approved installment proposal and shall have the same effect as in case of default in the payment of any installment under the approved proposal. All other provisions of existing rules and regulations not covered by this Circular shall continue to be observed and implemented. Please be guided accordingly. (sgd) SEC. ROMULO L. NERI President and CEO Approved by: SOCIAL SECURITY COMMISSION (sgd) THELMO Y. CUNANAN Chairman

×