SSS ends loan amnesty program

The Social Security System (SSS) has reminded beneficiaries of members with unpaid loans who passed away from April 2, 2012 onwards that they have only until today, Wednesday, to file for a Death Benefit claim in order for them to be covered by the Loan Penalty Condonation Program. The program covers delinquent borrowers whose employers failed to remit their loan payments to SSS, beneficiaries of members who dies with unpaid loans, those with at least three paid amortizations, and members filing retirement or total disability claims within the availment period. Under the program, which ran from April 2 to September 31, 2012, members have the option to pay in full or settle in monthly installments of up to 36 months, while beneficiaries of deceased delinquent borrowers can apply for the condonation program until March 31, 2013. A provision in the program allows beneficiaries of deceased member-borrowers with unpaid loans who will file for Death Claim within the period of April 2, 2012 up to the last working day of March 2013 to avail themselves of loan penalty condonation. The outstanding loan would be deducted from the death benefit claim. If they avail of the program, 100 percent of the accumulated penalties will be condoned or written off. “However, the beneficiaries must file the Death Benefit Claim and apply for condonation on or before March 31, 2013. After that date, the Condonation Program is officially ended,” the SSS said. Data from the agency showed that as of December 15, 2012, the SSS was able to collect a total of P2.878 billion in payments made under the program. The SSS granted partial to full amnesty on loan penalties to about 208,502 delinquent borrowers who availed themselves of the program and repaid their loans either on a one-time or installment basis, the agency also said. — KBK, GMA News