SSS loan condonation yields P1.81 billion

MANILA, Philippines — State-run Social Security System (SSS) said yesterday it has initially recovered P1.81 billion worth of contributions under a recently concluded Contribution Penalty Condonation Program (CPCP).

In a statement, SSS president and chief executive officer Aurora Ignacio said about 55,000 employers covering nearly 500,000 employees availed of the CPCP from March 6 to Sept. 6, enabling the state pension fund to condone P7.88 billion worth of delinquencies, P3.88 billion of which were waived penalties.

Ignacio also said the SSS has so far collected P1.81 billion worth of contributions from the full and installment payments of the employers who availed of the program.

“Some of the employers who availed of the program paid in full while most of them chose to pay their obligations in installment of up to 48 months. We’re hoping that they will be responsible enough this time to pay their dues on time not only to regain their good standing with the SSS but also for their employees to reap the benefits of being a member of SSS,” Ignacio said.

“We will closely monitor those who have availed of the CPCP so that we can immediately notify them at the first instance of non-payment of their obligation,” she added.

The implementation of the CPCP was in compliance with Republic Act 11199 or the Social Security Act of 2018, which empowers the Social Security Commission to increase benefits, condone penalties and rationalize investments, among others.

Under the transitory provisions of the law, an employer who is delinquent or has unpaid contributions may, within six months from the effectivity of the law, remit said contributions or submit a proposal to pay it in installment without incurring the prescribed penalty.

Upon approval and payment of the contributions in full or installments, any pending case filed against the employer shall be withdrawn. However, this will be refiled if the employer fails to settle their obligations.

 “We’re very happy that nearly half a million Filipino private workers will soon enjoy the seven benefits being offered by the pension fund as well as its short-term loan privileges as soon as their employers have fully remitted their contributions to SSS,” Ignacio said.

The SSS reminded delinquent employers who did not avail of the CPCP that they will be referred to the SSS Operations Legal Department for filing of case or for serving of Warrants of Distraint, Levy and Garnishment (WDLG).