Whenever I pass by Edsa and other main thoroughfares, I always notice some establishments with signs that say they accept SSS pension loan applications. Now, for clarification, these private lending establishments are not in any way connected with SSS.
They have their own loan scheme wherein they accept applications from either SSS and GSIS retiree-pensioners and take their ATM cards as collaterals. Sad to say for those who already succumbed to these institutions, they later discover that paying off their loans seems to take eternity since they have high interest rates ranging from 10 percent to 16 percent per annum. What’s worse is that some retiree-pensioners never get their cards back because they can’t seem to pay the high interest and penalties imposed on their loans. Being taken advantage of by these unscrupulous people given the vulnerability of their situation and financial standing, they were left with no other choice.
Launched in September 2018, SSS saw the importance of offering the Pension Loan Program to its retiree-pensioners with the primary objective of mitigating financial assistance for their immediate needs with a low interest rate. With this program, SSS doesn’t hold their ATM cards “hostage” as they are still assured of getting a portion of their monthly pensions even if they have a current loan.
To qualify, a retiree-pensioner must be:
1. 85 years of age or below at the end of the last month of loan term;
2. with no deductions, such as outstanding loan balance, benefit overpayment payable to SSS, etc. from the monthly pension;
3. with no existing advance pension under the SSS Calamity Package; and
4. receiving the monthly pension for at least one month and status of pension is “Active.”
The loan amount is based on the basic monthly pension (BMP) together with the P1,000 additional benefit with a maximum loanable amount of P200,000 and a 10-percent interest per annum. Dependent’s pension, if any, is not included.
For first time applicants, filing is done at the branches via the drop-box system as the Metro Manila and other cities are currently under in enhanced community quarantine (ECQ) status.
For those who will be renewing their application, they may do so online. Make sure that they must have a My.SSS account in the SSS web site, must have a current and active mobile number and must have one of the following: a valid SSS UMID-ATM card, valid UBP Quick Card with savings account number registered with SSS, or a valid Pension Savings Account Number registered with SSS.
For renewal of application, simply log-in to the My. SSS account. Click on “Pension Loan Application” under the E-Services tab. The retiree-pensioner must agree to the terms and conditions of the program to be able to proceed with the application. Fill in also the needed information and click “Proceed.” You will receive an e-mail confirmation of the pension loan application. Loan proceeds will be credited within five working days to the savings account.
In 2020, SSS disbursed P3.39 billion to 74,799 retiree-pensioners. For the first half of 2021, SSS disbursed P1.47 billion to a total of 33,007 retiree-pensioners. Generally, this proves that the PLP is successful in its purpose as shown by the number of retirees that have been going to SSS for their financial needs.
Indeed, we recognize that retirees have different financial situations and the Pension Loan Program has been helping them with the purchase of their maintenance medicines, medical treatments, health and wellness lifestyle or house repair projects for their families. Even after their working years, they can still rely on SSS for such needed contingencies as well. We are happy to note that SSS really makes an impact in their lives.
Have a great day everyone!
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.