The Social Security System (SSS) on Thursday, Oct. 24, announced that members and pensioners affected by the onslaught of Severe Tropical Storm Kristine can immediately avail of salary and pension loans for their monetary needs.
“As part of our proactive response to the urgent financial needs of our members and pensioners during natural calamities, the SSS loan programs are readily available to support their recovery,” SSS Senior Vice President for Lending and Asset Management Group Pedro T. Baoy said in a press release.
To qualify for a one-month salary loan, employed, self-employed, and voluntary members must have 36 monthly contributions, six of which should be within the last 12 months before the month of the loan application, he said.
Meanwhile, members should have at least 72 posted contributions if they opt to avail themselves of a two-month salary loan.
“They must be under 65 years of age at the time of loan application and have not been granted any final benefit like total disability, retirement, or death benefits,” Baoy said.
He reiterated that individually paying members must have at least six posted contributions under their current membership type before the month of the loan application.
“Employers’ compliance is crucial in these situations since their updated contribution and loan payments are essential for their employee’s loan eligibility,” Baoy added.
Qualified members can submit their salary loan application online via My.SSS Portal.
Once approved, loan proceeds will be credited to the member’s registered Unified Multi-Purpose Identification (UMID)-ATM Card or active accounts with a Philippine Electronic Fund Transfer System and Operations Network (PESONet)-participating bank, the press release said.
Members can pay the salary loan in two years through 24 equal monthly amortizations with an annual interest rate of 10 percent, Baoy said.
Meanwhile, retiree-pensioners can avail themselves of the SSS pension loan equivalent to three, six, nine, and 12 times their Basic Monthly Pension plus P1,000 additional benefit, but not exceeding the maximum P200,000. To qualify, the pensioner-borrower must:
Be 85 years of age or below at the end of the month of the loan repayment term;
Have no deductions from his/her monthly pension (such as for outstanding loan balance, benefit overpayment payable to SSS, and the like);
Have no existing advance pension under the SSS Calamity Assistance Package;
Be receiving his/her regular monthly pension for at least one month, and the status of pension is “active”;
Have updated contact information (cellular/mobile number, email, and mailing address).
“If retiree-pensioners availed of the 18 months advance pension, they must be receiving their regular monthly pension for at least one month,” Baoy said.
Pension loan applications can be submitted online via My.SSS Portal (www.sss.gov.ph) or over the counter at the nearest SSS branch.
Once approved, loan proceeds will be credited to the pensioner’s UMID-ATM Card or their active accounts with a PESONet-participating bank, the press release said.
The loan amortization, inclusive of a 10 percent annual interest rate computed on a diminishing principal loan balance, shall be deducted from the monthly pension ensuring a Net Take Home Pension of at least 47.25 percent of the Basic Monthly Pension (BMP) plus the P1,000 additional benefit, it added.
The repayment terms are six, 12, or 24 months, depending on the loanable amount, Baoy said.*