The Social Security System (SSS) added a new facility on its website to allow retiree-pensioners to file their Pension Loan Program (PLP) applications online.
SSS President and CEO Aurora C. Ignacio said the new facility, found under the E-Services tab of the My.SSS member portal at www.sss.gov.ph aims to provide retiree-pensioners with a safer, faster, and more convenient means of filing their pension loans.
“Through the SSS’ continuous digitalization efforts, the PLP was made available online since last September 15, 2020. Qualified retiree-pensioners can easily apply for the program without visiting our branches, which is either difficult or restricted, particularly for senior citizens, because of the COVID-19 situation,” Ignacio added.
Retiree-pensioners who may use the said online method for application are those who have met all the qualifying conditions of the PLP and have registered My.SSS web accounts, current and active mobile numbers, and disbursement accounts may be a valid SSS Unified Multi-Purpose Identification card enrolled as an ATM card or an SSS-issued Union Bank of the Philippines Quick Card.
The SSS is working towards the addition of Philippine Electronic Fund Transfer System and Operations Network (PESONet) participating banks among the PLP disbursement channels.
To file a PLP application online, a retiree-pensioner must log in to his/her My.SSS account, proceed to the E-Services tab, click “Apply for Pension Loan,” choose the preferred loan amount and term, agree to the terms and conditions of the program, and print or download the PDF copy of the Disclosure Statement.
The retiree-pensioner will receive an email confirmation of his/her pension loan application.
Pension loan proceeds are credited to the retiree-pensioners disbursement account within five working days.
Under the PLP, retiree-pensioners may opt to avail of a loan of three, six, nine, or 12 times their basic monthly pensions (BMP) plus the one thousand additional benefit granted in 2017, but not exceeding the maximum amount of P200,000.
To qualify for the PLP, the retiree-pensioner must be 85 years of age or below at the end of the month of his/her preferred loan term; must have no deductions, such as outstanding loan balance, benefit overpayment payable to the SSS, etc. from his/her monthly pension; must have no existing advance pension under the SSS Calamity Assistance Package; and must be receiving his/her regular monthly pension for at least one month and his/her status of pension is “Active.”
However, retiree-pensioners under the Portability Law, under the care and custody of a guardian, or receiving monthly pensions through checks are not qualified to avail of the PLP.
Pension loans of three and six times the pensioner’s BMP plus the P1,000 additional benefit have a payment term of six and 12 months, respectively. On the other hand, both pension loans of nine and 12 times the BMP plus the P1,000 additional benefit have a payment term of 24 months.
The first monthly amortization for the PLP will be due on the second month after the loan was granted.
“A good thing about the PLP is that borrowers’ monthly pensions are not entirely collected for amortizations. We make sure that retiree-pensioners, in their chosen pension loan amount and term, still have a net take-home pension of at least 47.25 percent of their BMP including the additional P1,000 benefit,” Ignacio said.
Pension loans have an interest rate of 10 percent per annum. The SSS will waive the collection of a one percent service fee to subsidize the payment for the premium of the Credit Life Insurance of the borrower.
The SSS launched the PLP in September 2018 to help retiree-pensioners with their short-term financial needs through a low-interest loan. As of August 31, 2020, the SSS has released 143,799 pension loans amounting to P5.27 billion.