The state-run Social Security System (SSS) began reimbursing loan repayments collected at the height of the pandemic two years ago.
In a statement, Aurora C. Ignacio, president and CEO of SSS, said Friday, February 11 that the pension fund will repay 105 million pesos in pension loan payments to 25,231 borrowers.
Reimbursement of pension loan repayment is based on Circular No. 2022-002 in accordance with the provisions of Republic Act No. 11494 or the Bayanihan to Recover as One Act.
Under the law, banks, quasi-banks, finance companies, loan companies and other financing institutions have been asked to grant a 30-day grace period for borrower loan repayments without incur interest on interest, penalties, fees and other charges.
The provision covered loan repayments with contributions between September 15 and December 31, 2020.
“We understand the difficult situation our PLP is facing [Pension Loan Program] borrowers, which is why they chose to deposit their loans with the SSS to further fund their immediate medical and financial issues caused by the current pandemic,” said Ignacio.
Ignacio added that PLP offers financial assistance to retirees for their short-term needs and the repayment of their retirement loan payments will greatly help them cope with the effects of the COVID-19 pandemic.
Eligible SSS retirees are those who are currently amortizing on the implementation date and those who started their monthly amortization in October 2020. They will receive loan repayment refunds for their loan repayments in October and November 2020.
For retirees who started their monthly amortization in November 2020, they will get a refund of their loan installments in November and December 2020 while those who only started paying their loan amortizations in December 2020 will only get a one month refund for December 2020.
“We inform our retirees that they no longer have to go to the SSS to request said reimbursement,” Igancio said.
“Similar to the April and May 2020 Loan Repayments on December 9 and 10, 2021 under Bayanihan 1, these Pension Loan Payment Refunds will be automatically credited to qualified retirees through their respective SSS UMID-ATM Card or Accounts. Union Bank QuickCard savings where they have already received the product,” she added.
In addition, SSS would also extend the retiree’s loan repayment term by one or two months without additional interest or penalty.
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