SSS pension loans reach P6 billion in 2022

MANILA, Philippines — State-run pension fund has released close to P6 billion in loans to pensioners last year, the highest disbursement on record.

In a statement, SSS said its Pension Loan Program (PLP) hit a record high P5.95 billion in 2022, surging by over 90 percent from the P3.08 billion in releases in 2021.

This is equivalent to 127,920 retiree-pensioners that availed the program last year, 85 percent higher than the 69,036 retiree-pensioners in 2021.

Last year, the monthly average of P495.77 million pension loans benefited 10,660 retiree-pensioners, compared to the P257.01 million monthly average that helped over 5,500 members.

The PLP, which started in 2018, aims to assist SSS retiree-pensioners in their immediate financial needs by offering a loan program with 10 percent interest rate per annum.

“We prevent our retiree-pensioners from becoming victims of private lending institutions that charge high interest rates and require them to surrender their ATM cards as collateral,” SSS president and CEO Rolando Macasaet said.

Data showed that Luzon recorded the highest number of PLP applicants with 30,158 retiree-pensioners amounting to P1.39 billion in pension loans.

Metro Manila came in second with 28,239 borrowers amounting to P1.43 billion followed by Visayas with 17,038 loan applicants worth P740 million.

Online application through the My.SSS portal had 39,568 loan applicants amounting to P1.8 billion.

Since May last year, SSS enhanced the PLP by allowing first-time applicants to file their loan applications using their My.SSS account.

This resulted in 39,568 approved pension loan applications in 2022, a significant jump from just nearly 4,000 in 2021.

Macasaet said opening an online facility for PLP borrowers paved the way for more retiree-pensioners to access the program amid convenience it offered.

PLP offers its borrowers instalment payment terms ranging from six to 24 months. Pensioners will still have a net take-home pension of at least 47.25 percent of their monthly pensions.

Qualified retiree-pensioners can avail of a loan equivalent to three, six, nine, or 12 times their basic monthly pension plus the P1,000 additional benefit granted in 2017, but not exceeding P200,000.