STATE-run Social Security System (SSS) is offering four new pandemic-relief and restructuring programs to offer a reprieve to employers and members with outstanding obligations and penalties.
During the launch last Thursday, SSS President and Chief Executive Officer Aurora C. Ignacio said these programs include the following: contribution condonation penalty (CCP); enhanced installment payment (EIP); housing loan restructuring and penalty condonation (HLRPC); and, short-term member loan penalty condonation (SMLPC).
“Given the circumstances we face today, we wouldn’t want to add to those who are already encountering hardships but help them get back on their feet,” Ignacio said.
“In trying times like these, people need the SSS and social security protection even more,” Ignacio said. She said the SSS “highly” encourages its members and employers “to take this opportunity to regain their good standing with us, avoid further accrual of penalties and enable themselves and their employees to qualify for the benefits and loan programs they need during this pandemic.”
Under the CCP, which will be offered for six months starting this month, qualified employers will be able to pay in full or installment overdue social-security contributions without penalties for a period of four to 24 months depending on the total amount of delinquencies.
Qualified employers are those with delinquencies in paying social-security contributions and or penalties covering the applicable month starting March 2020 onwards.
Meanwhile, the EIP program, which will also start this month, will enable qualified employers to pay their unpaid social-security contributions and/or employees- compensation contributions through installment for a period of nine months to 60 months depending on the total amount of delinquency.
Those who may avail of this program are regular and household employers with unpaid social-security contributions and/or employees- compensation contributions, for at least six applicable months, either cumulative or consecutive, including penalties, as of date of application.
These programs are expected to benefit 700,000 employers. Total amount of delinquencies stood at P55 billion, of which 20 percent or P11 billion are penalties that are expected to be condoned, according to SSS Senior Vice President Mario R. Sibucao.
In terms of the loans, the SSS said its HLRPC program aims to provide housing loan borrowers the chance to pay their past due housing loans without penalties. Likewise, this shall also provide delinquent borrowers the chance to maintain possession of their collateral properties by paying in full or by restructuring their housing loans.
Past due shall mean that the housing loan is delinquent for six months as of the filing of the date of application within the condonation period.
For this program, which will start on November 22, 2021 and last until February 21 next year, SSS Senior Vice President Pedro T. Baoy said they are targeting almost 2,000 housing loan borrowers with a cumulative principal of about P350 million.
Baoy said they are estimating to condone about P2 billion in penalties.
Lastly, the SMLPC program aims to provide member-borrowers with delinquent loans an opportunity to fully settle obligations in an affordable payment term which may either through one-time payment or installment. Upon full payment, unpaid penalties shall also be condoned.
The program will be open for applications starting November 15, 2021 to February 14, 2022.
Baoy said almost 7 million borrowers are expected to benefit from the program with a cumulative principal of P59 billion.
The SSS is also targeting to condone P60 billion in penalties under this program.