The Social Security System (SSS) have programs that are designed to respond to such situations where our members and pensioners need assistance for their immediate financial needs.
Launched in September 2018, the SSS Pension Loan Program (PLP) aims to provide economic assistance to qualified retiree-pensioners through a low-interest loan. SSS added a new facility on its website to allow retiree-pensioners to file their Pension Loan Program (PLP) applications online.
Since senior citizens are restricted to go out, effective September 15, 2020, the SSS has made available the online filing for the PLP to allow qualified retiree-pensioners to file their PLP applications, in the safety of their homes, through the My.SSS member portal at www.sss.gov.ph.
This too is part of the SSS’ continuous digital transformation efforts geared towards providing its members with simpler, faster, and more convenient means of availing its services.
To qualify for online filing, pensioners should have the following:
- A My.SSS account (to facilitate the online filing);
- A current and active mobile number;
- A disbursement account registered with the SSS that may be a Unified Multi-Purpose Identification card enrolled as an ATM card or an SSS-issued Union Bank of the Philippines Quick Card (disbursement of pension loans through
PESONet participating banks is not yet available); - 85 years of age or below at the end of the month of their loan term;
- No deductions, such as outstanding loan balance, benefit overpayment to the SSS, etc. from monthly pension;
- No existing advance pension under the SSS Calamity Assistance Package;
- Receiving their regular monthly pension for at least one month, and the status of pension is “Active;”
- Not a retiree-pensioner under the Portability Law or under the care and custody of a guardian and is not receiving monthly pensions through checks.
Retiree-pensioners who may use the said online method for application are those who have met all the qualifying conditions of the PLP and have registered My.SSS web accounts, current and active mobile numbers, and disbursement accounts may be a valid SSS Unified Multi-Purpose Identification card enrolled as an ATM card or an SSS-issued Union Bank of the Philippines Quick Card.
In most cases, those who are eligible for the online application of pension loans are those who have previously availed of the program, are already fully paid and have been issued UBP Quick Cards.
If they met these conditions, they may file their PLP applications online through these five easy steps:
1. Log in to their respective My.SSS accounts;
2. Proceed to the E-services tab and click “Apply for Pension Loan;”
3. Choose their preferred loan amount and term;
4. Agree to the terms and conditions of the program and submit their application; and
5. Print or download the PDF copy of the Disclosure Statement.
The retiree-pensioner will receive an e-mail confirmation of his/her applications. Pension loan proceeds will be credited to their disbursement accounts within five working days.
Through the PLP, qualified-retiree pensioners may avail themselves of a loan of three, six, nine, or 12 times their basic monthly pension (BMP) plus the P1,000 additional benefit, granted in 2017, but not to exceed the maximum loan amount of P200,000.
Pension loans of three and six times the pensioner’s BMP plus the P1,000 additional benefit have a payment term of six and 12 months, respectively. On the other hand, both pension loans of nine and 12 times the BMP plus the P1,000 additional benefit have a payment term of 24 months.
The first monthly amortization for the PLP will be due on the second month after the loan was granted. Amortizations are deducted from the retiree-pensioner’s monthly pension.
The SSS ensures that the borrower, in his/her preferred loan amount and term, will still have a net take-home pay of at least 47.25 percent of his/her BMP, including the additional P1,000 benefit.
The PLP has an interest rate of 10 percent per annum. All pension loan borrowers are covered by a Credit Life Insurance where the premium is deducted from the pension loan proceeds.
As of September 30, 2020, we have released P5.58 billion to 150,466 borrowers under the PLP.