Social Security System members with overdue loans can settle their unpaid obligations without paying the full amount of penalties under a new amnesty program of the SSS starting April 2.

Ma. Luz Generoso, head of the SSS Lending and Asset Management Division, yesterday said qualified applicants whose loan delinquency was not their fault, such as non-remittance of payment by employers, may avail of 100 percent condonation of penalty.

Beneficiaries of deceased borrowers can also avail of the 100 percent condonation should they file their death claim within the availment period of the amnesty on loan penalties, Generoso said.

She added that 90 percent of penalties will be condoned for those who have at least three paid amortizations and who will pay their principal and interest in full.

Those who will pay the principal and interest in monthly installments over a period of three years will have 80 percent of their loan penalties waived, Generoso said.

Under the program, SSS will also condone 50 percent of loan penalties of member-borrowers who are filing for total disability retirement claims. The outstanding loan balance and remaining penalties will be deducted from their retirement or disability benefit.

Earlier, a statement issued to the media by SSS Chief Executive Officer Emilio de Quiros Jr. said that the amnesty program covers overdue salary loans, calamity, emergency, educational, study-now-pay-later, stock investment and privatization fund loans.

De Quiros said the latest amnesty on loan penalties differs from the loan penalty condonation programs in the past since the terms and requirements for applicants will depend on the type of delinquent borrower.

SSS acknowledged that some borrowers were registered as delinquent after their employers failed to remit their monthly amortization, while some were beneficiaries of deceased borrowers.

Aside from ensuring that unpaid loans will be eventually fully settled, Generoso said the condonation on penalty will also assist the SSS in identifying employers who are not remitting the payments of their employees.

For the smooth implementation of its latest program, SSS offices nationwide will designate one counter to attend to the queries of the applicants, Generoso said.*NAB

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