IF you are one of those who took advantage of initial public offerings (IPOs) in the mid-1990s and borrowed under the Social Security System (SSS) Stock Investment Loan Program (SILP) or the SSS Privatization Fund Loan Program (PFLP) in order to buy the shares you wanted, and later forgot about it, now is your chance to clean up your delinquent loan record.
Early this year, the SSS offered the option to sell shares of stock program to members with outstanding loans under the above-mentioned SILP and PFLP. SSS members who are delinquent in the payment of their loans may avail themselves of the option to sell program by opting to sell their stocks at prevailing market value and then paying their loans from the proceeds of the sale.
Here’s how the program works:
A special power of attorney shall be executed by the member authorizing the SSS to sell the shares of stocks.
The shares of stocks shall be sold by the SSS at prevailing market price.
The net proceeds from the sale shall be applied to the outstanding SILP/PFLP loan balance.
The excess amount, after the application to the outstanding SILP/PFLP loan balance, shall be applied to other delinquent member and housing loans, if any.
Any excess amount after the application to other delinquent loans shall be refunded to the borrower.
If the net proceeds from the sale cannot cover the outstanding SILP/PFLP loan balance, the remaining amount shall be paid through deduction from the proceeds of a new salary loan or from the final benefits, such as total disability, retirement and death.
The remaining loan balance shall continue to be charged with interest and penalties until fully paid.
Not a bad deal, isn’t it? You get to pay your outstanding loan without having to shell out money, unless the present value of your shares of stocks is very much depreciated and not enough to pay your loan.
So why don’t you check this and find out if the shares of stock you bought years ago have appreciated in value, or more than enough to pay your outstanding loan and leave you with some to spare dividends. You get to clean up your loan record with the SSS and, at the same time, enjoy some of your realized gains.
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For more information about the Social Security System (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 SSS. Send comments about this column to susiebugante.bmirror@gmail.com.