The Social Security System (SSS) Building on East Avenue, Quezon City. INQUIRER file photo / RAFFY LERMA
The state-run Social Security System (SSS) has yet to collect P84.53 billion in members’ loans as of the end of 2021, a sum that could have been reinvested for the benefit of its members and beneficiaries, state auditors said in an audit.
State auditors advised the pension fund for private employees to improve its collection of unpaid loans by closely monitoring the collection performances of its branches, and sending regular billings to member-borrowers.“Delayed completion and full implementation of systems change, plans and programs to improve collection of member loans resulted in the inability of SSS to reduce member loan delinquencies,” a 2021 audit report on the SSS read.
It added: “As observed in audit in the previous years, the substantial amount of uncollected loan accounts hindered the system from reinvesting the funds to generate income for the social protection of SSS members and their beneficiaries.”
The Commission on Audit found that the P84.53 billion in uncollected loans is 75.27 percent of the total balance of members’ loan accounts worth P112.295 billion as of the end of 2021.