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The account officers of the Social Security System (SSS) have been working tirelessly since March 2019 to convince delinquent employers in their coverage areas to avail themselves of the one-time Contribution Penalty Condonation Program (CPCP). Upon clocking in at 8 a.m., they consolidate records and compute delinquencies. By 1 p.m., they literally went door-to-door to talk to employers. They had to bring homework on
weekends to catch up with the deadline.
Now that the dust has settled with the culmination of the program on September 6, 2019, it is now time to see the results.
SSS is still collecting data from branches nationwide. But as of September 13, the total number of delinquent employers who availed themselves of the program has reached 55,750. The good news: They have about 500,000 employees whose contributions have been settled.
To reiterate, CPCP was beneficial not only for employers and members but also for the SSS.
For employers, CPCP allowed them to settle unpaid premiums of their employees with the incurred penalties waived under easy payment terms for a maximum of 48 months. The settlement of unpaid contributions reverted these employers to their good standing status with the pension fund. The total amount of penalty condoned amounted to P4.42 billion. Employers were only made to pay for the unpaid premiums, amounting to P3.16 billion. Many of them opted for installment payments of up to 48 months.
For members whose benefits were delayed and whose loan privileges were cut due to unpaid premiums, the CPCP paved the way for them to fully enjoy their membership accorded with seven benefits from womb to tomb. Actively paying members can avail themselves of sickness, maternity, unemployment, disability, retirement, funeral and death/survivorship benefits.
Through the CPCP, the pension fund managed to collect from delinquent employers without the lengthy judicial process. As of September 6, 2019, SSS has collected P1.78 billion in contribution delinquencies. The remaining collection through amortization has a little interest to consider the value of money over time.
For me, the most significant impact of CPCP would be the happy faces of members who benefited from the program. The case of Marvin Almencion featured on TV Patrol shows the human face of the program. Almencion has been a household helper for 13 years but without SSS membership. At the time of CPCP, he was about 63 years old when his employer availed of the contribution condonation. In the TV feature, Almencion thanked his employer profusely for paying his SSS contributions. Today, he is back in his hometown province. He can apply for monthly pension soon. The story of Almencion is multiplied by almost half a million employees of employers who availed themselves of CPCP.
CPCP was one program that gave a chance for delinquent employers to put their records back to good standing. The regular conduct of the Run Against Contribution Evaders campaign is also a softer approach than the issuance of warrants of arrest for court convicted delinquent employers. Under RACE, erring employers are notified through a show cause order posted in their premises and they are given 15 days to explain why they should not be held legally liable.
Now, SSS is back to the grind with aggressive coverage and collection efforts to ensure that employers fulfill their obligations to report their business and employees to SSS, and pay their monthly contributions.
Last week, SSS, together with the Philippine National Police Manila Police District, continued its crackdown of delinquent employers when warrants of arrest were served to two employers in Metro Manila. To date, a total of 15 employers with warrants of arrest have been apprehended nationwide. Three of these are still ongoing trials in courts, while others chose to settle in the recently concluded CPCP.
Truth to tell, SSS management does not want employers to be imprisoned. As much as possible, we want to avoid the lengthy judicial process. It is only when push comes to shove that we are forced to resort to filing of legal cases against violators of the SS Law.
A reminder to all employers who availed themselves of the CPCP through installments, I strongly advise that you strictly comply with your monthly installments to avoid paying further penalties.
Thank you for the hard work, persistence, and dedication of our 721 account officers nationwide who personally assisted the employers to avail themselves of the CPCP. But the work is far from over. The crackdown on employers who continue to violate the SS Law continues.
Aurora C. Ignacio is SSS president and chief executive officer.
We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss.gov.ph for topics that you might want us to discuss.