Social Security System (SSS) members can pay their overdue loans at discounted penalties of 50 to 100 percent under a new amnesty program that takes effect on April 2.
SSS President and Chief Executive Officer Emilio de Quiros, Jr. said the amount of condonable penalties under its Loan Penalty Condonation Program for Individual Members will depend on the borrowers’ history of loan payments.
"Borrowers whose delinquency was not their fault and those who have shown more initiative to pay monthly amortizations will get a higher rate of condonable penalties as compared to members who waited until retirement to settle their obligations," he said.
Applicants who fall under "Situation 1," which refers to members whose deducted amortizations were unremitted by their employers and beneficiaries of deceased delinquent borrowers, will be granted full condonation of penalties that have accrued as of April 1.
"Beneficiaries of borrowers who died with unpaid loans can apply for amnesty on penalties if they file their death claim within the availment period. In effect, they will receive a higher amount of benefits because SSS will no longer deduct penalties from their claim," he said.