EARLY this year, the Social Security System (SSS) announced a way for members to settle their outstanding stock investment and/or privatization fund loans by exercising their option to sell their stocks at prevailing market value and then paying their loans from the proceeds of the sale.
The option to sell program is targeted to individual SSS members who are delinquent in the payment of their loans under the Stock Investment Loan Program (SILP) or the Privatization Fund Loan Program (PFLP). To avail himself or herself of the option to sell program, the member-borrower should accomplish the application form for the option to sell shares of stocks and submit it with the following documents: notarized Special Power of Attorney authorizing the SSS to sell the shares of stocks (the certificates of which are held in the SSS’s custody); broker signature card; customer account information form; SSS identification card or two valid IDs, one of which has a photo and signature of the cardholder; and statement of account issued by the SSS SILP section at the head office.
The shares of stocks will be sold by the SSS based on the current market price quoted by an accredited stock broker. After the required charges (broker’s fees, sales tax, value-added tax, etc.) are deducted from the proceeds of the sale, the net amount shall be applied to the outstanding balance of the SILP or PFLP.
Upon posting of the payment and closing of the SILP/PFLP account, the remaining amount from the proceeds of the sale shall be applied to other delinquent member loans. Any amount in excess of all the loan payments shall be refunded to the member-borrower.
If the net proceeds of the sale are not sufficient to cover the outstanding balance for the SILP/PFLP,
the remaining loan balance may be paid by the member-borrower at any SSS branch with teller facilities or at any SSS-accredited payment centers. The member-borrower should coordinate with the SILP section for the proper application of the payment.
The remaining loan balance will continue to be charged interests and penalties until it is fully paid. It is advisable, therefore, for member-borrowers to settle their loan delinquencies the soonest possible time.
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For more information about the SSS and its programs, call our 24-hour call center at (632) 920-6446 to 55, Monday to Friday, or send an e-mail to member_relations@sss.gov.ph.
Susie G. Bugante is the vice president for public affairs and special events of the Social Security System. Send comments about this column to susiebugante.bmirror@gmail.com.