What you should know about SSS salary loans
SSS partnered with Citibank for a new Prepaid Card for loans and benefits.
Jun 27, 2012 14:00 pm
The Social Security System (SSS) plans to shift to the electronic disbursement of salary loans and short-term benefits from its current system of releasing them through checks. This will make it more convenient for members and employers.
As an initial step, this year the agency began mandatory reimbursement of employees’ sickness and maternity claims via bank accounts.
"Our ultimate goal is to institutionalize check-less transactions to eliminate problems that may occur with sending checks through mail. It will offer greater convenience for members and employers since they no longer have to go to a bank to encash or deposit their checks, nor wait for the required check-clearing period," said SSS President and Chief Executive Officer Emilio de Quiros, Jr.
The electronic release of loans and benefits will also address problems such as delay in delivery of checks, as well as stolen, misdelivered or return-to-sender checks. Lost checks take up to as much as six months to replace.
"Disbursing benefit and loan proceeds electronically will help especially members based in the provinces, since issuance of checks is centralized at the SSS main office in Quezon City and thus, takes more time to be delivered to them," de Quiros said.
The state-run institution recently tied up with Citibank for the electronic release of salary loan proceeds and short-term benefits through a special cash card for members. De Quiros said SSS expects to start issuing the new Citi Prepaid Card for SSS Salary Loans and Benefits to members within the second half of 2012.
"There will be no additional cost for the use of the card, which is valid for three years and accepted in automated teller machines and debit transactions. Cards of OFW-members will be issued only in the Philippines but they can use them to transact anywhere in the world," he said.
"For transactions outside the Philippines, our members based overseas will benefit from Citi’s worldwide service since the prepaid card is recognized by over 30 million merchants and more than 1.5 million ATMs all over the world," de Quiros said.