Revised Guidelines on the SSS Pension Loan Program

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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 

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AT A GLANCE:

Pursuant to SSC Resolution No. 212 s. 2022 dated April 6, 2022 approving the revised implementing guidelines on the pension loan program for SSS retiree-pensioners, all SSS retiree-pensioners who met the qualifying conditions for the availment of the loan are eligible to apply. Moreover, SSS-retiree pensioners whose retirement claims were settled under the Special Pension System, or under the care and custody of a guardian, or receiving their monthly pension through checks shall be excluded from this program.

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Eligibility

1. The retiree pensioner must be registered in the SSS Website to facilitate filing of pension loan. 
2. To qualify, the retiree-pensioner:

2.1 must be 85 years of age or below at the end of the month of loan term;

Payment Term	Age at Time of Availment
6 months	84 years and 4 months
12 months	83 years and 10 months
24 months	82 years and 10 months

 

NOTE: The age of the retiree-pensioner at the time of loan application should not exceed eighty-five years. 

2.2 must have no deductions, such as outstanding loan balance, benefit overpayment payable to SSS, etc. from his/her monthly pension;

2.3 must have no existing advance pension under the SSS Calamity Loan Package; and 

2.4 must be receiving his/her regular pension for at least one (1) month and the status of the pension is “Active”.

 

Note: If the retiree-pensioner availed the 18 months advance pension, he/she must be receiving his/her regular monthly pension for at least one (1) month.

 

Loanable Amount

The loan amount that may be availed is based on the basic monthly pension (BMP) together with the P1,000.00 (1K) additional benefit. Dependent’s pension, if any, is not included.

 

The retiree-pensioner has the option to choose the loanable amount from any of the following, but not to exceed the maximum loan limit of P200,000.00:

 

1. 3x (BMP+1K additional benefit);
2. 6x (BMP+1K additional benefit);
3. 9x (BMP+1K additional benefit); or 
4. 12x (BMP+1K additional benefit)

 

Loan Repayment Term 

The monthly amortization of the pension loan shall be deducted from the monthly pension of the pension loan borrower, as follows:

 

Loanable Amount	Loan Repayment Term
3x (BMP+1K additional benefit)	6 months
6x (BMP+1K additional benefit)	12 months
9x (BMP+1K additional benefit)	24 months
12x (BMP+1K additional benefit)

Interest Rate 

The loan shall incur an interest rate of ten percent (10%) per annum until fully paid, computed on a diminishing balance, which shall become part of the monthly amortization. 

 

Credit Life Insurance (CLI)

All pension loan borrowers shall be covered by CLI. The premium shall be borne by the pension loan borrower through a one-time deduction from the proceeds of the loan.

 

In the event of death of the pension loan borrower before full payment of the pension loan, the outstanding balance shall be considered fully paid and shall not be deducted from the death benefit of the pension loan borrower. 

 

The Insurer shall cover the original principal loan amount of the pension loan borrower and shall pay SSS the said amount.

 

Any excess in the insurance proceeds after payment of the outstanding balance of the loan shall be paid to the rightful beneficiary of the pension loan borrower. 

 

In any case that should there be no identified or nominated survivor/beneficiary, excess insurance shall be forfeited for the benefit of SSS or shall be for the account of SSS. Implementation of which, shall be two (2) years after the date of insurance claim. 

 

Filing of Pension Loan

1. Pension Loan Borrower shall file/submit loan applications through the My.SSS facility, SSS mobile application, SSS Self Service Express Terminal, and Over-the-Counter loans granting facility.
2. Pension Loan application shall be part of the E-services.
3. The retiree-pensioner must agree to the terms and conditions of the program before he/she can complete the submission of his/her application.
4. Applications submitted after 5:00 PM (Local Philippine Time) shall be processed on the next working day.
5. The retiree-pensioner shall receive an email and/or SMS confirmation of his/her pension loan application and watermarked PDF copy of the Disclosure Statement.

 

Processing and Release of Pension Loan 

Pension loan shall be processed within the day of filing. The proceeds of the loan shall be credited to the pension loan borrower’s nominated bank account.

 

Disbursement of Pension Loan Proceeds

The Pension Loan proceeds shall be released through Electronic Funds Transfer Facilities and shall be credited to any of the following accounts of the pension loan borrower:

 

1. Pension account enrolled in Disbursement Account Enrollment Module (DAEM);
2. Unified Multi-Purpose Identification (UMID) ATM enabled account;
3. UnionBank Quick Card with Savings Account Number registered with SSS; and
4. Other intermediaries’ accounts accredited by the disbursing bank.

 

Service Fees of Disbursing Bank

Service fees charged by the disbursing bank shall be borne by the pension loan borrower through deduction from the pension loan proceeds.

 

Loan Renewal

Pension loan borrowers shall be allowed to re-apply for pension loan only after full payment of the current loan.

 

Other Conditions

1. In case the monthly pension of the pension loan borrower is cancelled due to re-employment/resumption of self-employment under the Social Security Act of 2018, the outstanding pension loan balance shall be due and demandable.
2. In case the monthly pension of the pension loan borrower is suspended due to non-compliance with the Annual Confirmation of Pensioners (ACOP), the outstanding balance of the pension loan shall be deducted upon resumption of the pension loan borrower’s monthly pension, without any penalty charge.
3. A pensioner with a pending request for re-adjudication or adjustment of pension shall not be granted a pension loan. On the other hand, request for re-adjudication or adjustment of pension loan borrower’s benefit shall be allowed only after the full payment of the availed pension loan.

 

Pension loan borrowers may now file their initial pension loan online upon implementation of these revised guidelines on May 30, 2022 following its publication in a newspaper of general circulation and the registration and filing of three (3) copies of the published Circular with the Office of the National Administrative Register. Borrowers may still apply over-the-counter until further notice.

 

This supersedes Circular No. 2019-015 dated October 8, 2019 and 2020-022 dated September 15, 2020.

 

RELATED ARTICLES:

• Briefer on the List of Documentary Requirements for Retirement Benefit under SSS Circular No. 2020-010
• SSS Unemployment Benefits (Unemployment Insurance or Involuntary Separation Benefits)

 

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