Pag-Ibig, SSS offer amnesty on unpaid loan penalties
The Social Security System and the Pag-Ibig Fund are offering some members and employers full or partial relief on penalties for unpaid loans and unremitted contributions, according to officials.
Emilio de Quiros Jr., SSS president and chief executive, said in a statement a new amnesty program will allow members to settle overdue loan payments without paying penalties.
SSS offers its members salary, calamity, emergency, educational, study-now-pay-later, stock investment and privatization fund loans.
Members may apply for amnesty until September 30, but beneficiaries of borrowers who passed away without settling their arrears have until March 30, 2013.
“SSS will waive 100 percent of penalties of qualified applicants whose loan delinquency was not their fault, such as members whose employers failed to remit their amortizations to SSS despite deducting loan payments from their salaries,” De Quiros said.
To qualify for full condonation of penalties, an SSS member must have at least three contributions within the last six months before the month of application for amnesty and present proof of deducted loan amortizations.
Payment schemes
These members “can pay their loan principal and interest in full, or avail of a three-year installment payment scheme at an annual interest rate of three percent,” De Quiros said.
Also qualified for the amnesty are beneficiaries of deceased borrowers who file their death claims, proceeds from which the unpaid loan principal and interest will be deducted.
“Members with at least three paid amortizations will have 90 percent of their penalties condoned if they pay in full,” De Quiros added.
