SSS sets P60-B funding boost
The Social Security System (SSS) is deploying P60 billion worth of relief measures, including relaxed loan terms and early release of pension hikes, to cushion households from price shocks caused by the Middle East war.
In a statement, the state-run pension fund said the bulk of the financial assistance package would be through an enhanced emergency loan program worth P27 billion. It is offering up to P20,000 in short-term loans at a reduced 7-percent annual interest rate.
The eligibility threshold has been eased to 18 months of posted contributions from the previous 36 months. It now covers members with minimal past-due loans of up to three monthly amortizations, as well as overseas Filipino workers.
Loan repayment terms include a six-month moratorium.
SSS also reiterated the availability of its microloan program. This offers short-term loans ranging from P1,000 to P20,000 with repayment terms of 15 to 90 days and an interest rate of 8 percent per annum.
For pensioners, the agency will advance the implementation of its pension increase to June from the scheduled September rollout, with about P6.5 billion expected to be released under the reform program.
Retirement and disability pensions will increase by 10 percent, while death and survivor benefits will rise by 5 percent.
Loan penalty condonation measures will also be available to members with past-due obligations, with SSS waiving penalties on unpaid loans upon settlement of principal and interest.
Even delinquent employers are covered by condonation and restructuring programs, including the Contribution Penalty Condonation, Delinquency Management and Restructuring Program for businesses, as well as the Contribution Penalty Condonation and Restructuring Program for household employers.
The Middle East war, which first erupted in late February, has since rippled across supply chains, particularly in fuel and food markets. Consequently, Philippine inflation in March spiked to 4.1 percent—the highest rate in nearly two years.
“We recognize that rising prices and economic uncertainty continue to place pressure on Filipino families and businesses. Through these enhanced programs, SSS is ensuring that our members and pensioners have access to timely, affordable and reliable financial support when they need it most,” SSS president and CEO Robert Joseph de Claro said.
