SSS raises loanable amount for pensioners

MANILA, Philippines — More than 1.5 million pensioners of the Social Security System (SSS) may now borrow up to P200,000 from the state pension fund under its Enhanced Pension Loan Program (PLP), a top official said yesterday.

In a statement, SSS president and chief executive officer Aurora Ignacio said they launched the enhanced PLP pursuant to Social Security Commission (SSC) Resolution No. 429, series of 2019.

Ignacio said the program increases the total loanable amount for member-retirees to a maximum of P200,000,
 depending on their basic monthly pension.

“As we celebrate Elderly Filipino Week, we would like to inform our pensioners the good news about PLP. They can now borrow up to 12 times their basic monthly pension plus the additional P1,000 benefit. SSS branches are now accepting PLP applications from qualified retiree-pensioners,” Ignacio said.

“We want our pensioners to know that we value them as one of our key stakeholders in recognition of their support to SSS during their prime, wherein their monthly contributions were the lifeline of the pension fund,” she added.

Aside from the higher loanable amount, Ignacio said the program also provides longer payment terms and wider range for age qualification.

To qualify, Ignacio said retiree-pensioners should be 85 years old and below by the end of the loan repayment term, have no outstanding loan balance and have benefit overpayment deductible from their monthly pension.

They must also have no existing advance pension under the SSS calamity package, have been receiving their regular monthly pension for at least one month and in an “active” pension status.

Ignacio said the repayment term was also adjusted so that borrowers would have the option to pay their loan in six, 12 or 24 months, with the first monthly amortization due on the second month after the loan is granted.

“We enhanced the PLP rules to provide qualified SSS pensioners with a higher loanable amount at a longer payment term to discourage them from transacting with loan organizations which charge steep interest rates. We hope that more pensioners will be encouraged to avail of this loan as this only incurs an interest rate of 10 percent per annum,” Ignacio said.

The SSS implemented the PLP in September 2018 in response to the growing incidence of pensioners falling victim to loan sharks.

Ignacio said the SSS, as of Sept. 30, has released 59,224 pension loans amounting to P1.4 billion under the program.

The SSS’s net income in the first half of 2019 jumped by 441.34 percent to P15.32 billion from P2.83 billion in the same period last year.

Its total assets also rose to P542.27 billion as of end-June from last year’s level of P511.47 billion.