Starting April 28, 2016, the Social Security System (SSS) launched the Loan Restructuring Program (LRP) for members with past due calamity and other short-term loans who reside or work in calamity areas declared by the national government or the National Disaster Risk Reduction and Management Council. Members have until April 27, 2017, or one year, to avail themselves of the program.
The LRP will give members the chance to clean up their overdue loans (principal and interest) either in full or installment payments under a restructured term depending on their capacities to pay. Both payment schemes offer condonation of loan penalties. This program is SSS’s response to the clamor of members to alleviate their burden after suffering from natural and man-made calamities that have made it difficult for them to pay for their loans. It covers calamity-loan borrowers in the 1990s following the 1990 earthquake and the 1991 Mount Pinatubo eruption, and members with past due short-term loans in declared calamity areas after the onslaught of tropical storms and typhoons Ondoy in 2009; Sendong in 2011; Pedring, Quiel and Pablo in 2012; Labuyo, Maring, Santi, Yolanda and Agaton in 2013; Glenda, Mario, Ruby and Seniang in 2014; Lando and Nona in 2015. Also included are the Zamboanga armed conflict and the Bohol-Cebu earthquake, which both occurred in 2013.
SSS short-term loans include salary loan, salary loan early renewal program (SLERP), emergency loan, calamity loan, voc-tech loan, Y2K loan, investments incentive loan, study-now pay-later plan and the previously offered educational loan, which is different from the education assistance (Educ-Assist) loan program. Stock investment, privatization fund and Educ-Assist loans are excluded from the LRP as these loans have their own ongoing liquidation program.
To qualify under the program, the loan must be past due for at least six months and the member must be living or working in declared calamity areas as of the date of the disaster, attested through an Affidavit of Residency. LRP applications may be filed at any SSS branch, including those overseas.
Member-borrowers who are unable to personally apply for LRP due to working or living overseas or for some other reason, must issue a special power of attorney duly notarized and authenticated by the Philippine Embassy or Consulate office (in the case of overseas Filipinos) to enable their authorized representatives to apply for the LRP on their behalf.
Members who have been granted their final benefit claims prior to the start of the program and those who have committed fraud against the SSS are disqualified from joining the program.
Six months after their past due loans are fully paid, members will be able to exercise their loan privileges once again. However, they can no longer participate in future loan restructuring or loan condonation programs.
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For more details on SSS programs, members can drop by the nearest SSS branch, visit the SSS web site (www.sss.gov.ph), or contact the SSS call center at 920-6446 to 55, which accepts calls from 7 a.m. on Mondays all the way to 7 a.m. on Saturdays.
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.