Helping SSS members bounce back from calamities

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Saturday, December 17, 2016
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THE typhoon season is a bitter reminder of the country’s vulnerability in the face of natural calamities and disasters. As residents of one of the most disaster-prone nations in the world, Filipinos are no stranger to the destruction brought by typhoons, earthquakes and other calamities which damage homes and properties and destroy infrastructure such as electricity and communication facilities.
Beyond the physical devastation caused by calamities, the loss of loved ones and the disrupted lives and livelihood truly test the resiliency of the Filipino spirit. With the support of people around them, calamity-stricken Filipinos learn to get back on their feet, move forward, and eventually overcome seemingly unbearable and insurmountable challenges — but the road to complete recovery is often not easy.
FINANCIAL STRUGGLES
Life after typhoon “Yolanda” has been difficult, according to Felix Mejias, a 43-year-old construction worker in San Jose, Tacloban City. The storm surge triggered by “Yolanda,” described as one of the strongest typhoons in history, wiped out their home. Although through sheer luck, all his family members were able to survive from the tragedy.
While a charitable nongovernment organization has provided them with a new house, it was smaller than their previous home which can easily accommodate him, his wife and six children. Life in their household has yet to return to normal. “Sa ngayon, still recovering pa kami. Kahit nga hanggang ngayon iisa pa lang ang gamit na naipundar ko, TV pa lang. Wala nang iba pang appliances,” Mejias said.
He doesn’t hold a permanent job since the storm surge also wrecked the beach resort where he previously worked. However, he and his co-workers were hired by their previous employer to help rehabilitate the beach resort. Mejias immediately accepted the offer as he was in dire need of income to support his family’s needs.
Given his financial difficulties, Mejias grabbed the opportunity to apply for a salary loan from the Social Security System (SSS). However, more than two years have passed and he was still unable to pay his loan. “Hindi na kasi kasya ang kinikita ko ngayon na mahigit P250 lang araw-araw. ‘Yan eh kung merong trabahong pinapagawa,” Mejias explained.
Currently, his outstanding loan stands at about P5,500 which comprises of the principal, interest and penalties. As much as he wanted to renew his SSS salary loan, he remains unqualified because of his past due loan obligation.
UNPAID LOANS AFFECTING BENEFITS
Ener Poblete applied for SSS calamity loan in San Fernando, Pampanga when he was a company employee back in 1988 after his area was hit by a typhoon.
“Nangailangan ako ng pera para makatulong sa aming pamilya at kahit papaano, magkaroon ng konting pagkukunan para maitaguyod ko ang aking pamilya,” Poblete said. He received a loan check worth P4,425 which he used for his family’s basic needs.
After 27 years, Poblete, now 60 years old, serves as a caretaker at his niece’s house while his wife works part-time in a drugstore. Upon filing his application for the SSS retirement claim, Poblete discovered that his loan had ballooned to over P63,000 since penalties and interest have accumulated for more than two decades.
SSS records also revealed that he received another calamity loan in 1991 which also remained unpaid, considering the difficulties he faced after the Mt. Pinatubo eruption which devastated the Luzon region. From an initial loan of P3,000, the amount grew to over P25,000 over the years. When combined with his first calamity loan, his outstanding SSS loan obligation amounts to more than P88,000. This discouraged Poblete from filing his retirement claim for he would have to wait for many months before he can enjoy his SSS pension, since the benefit would first be applied as monthly payments for his outstanding loan balance.
Mejias and Poblete are among the member-borrowers with SSS loan delinquencies brought about by the onslaught of natural disasters. Even if with a sincere intention to clear up their past due loans, how can calamity-stricken SSS member-borrowers fulfill their obligation if their repayment capacity was weakened by unfortunate circumstances?
MUCH-AWAITED RELIEF
On April 28, 2016, the SSS launched the Loan Restructuring Program (LRP) to help calamity affected member-borrowers with overdue short-term loans to settle their unpaid obligations and respond to the clamor for assistance from its borrowers. Members can file their LRP applications at any SSS branch until April 27, 2017.
“SSS recognizes the reality that a large number of member-borrowers struggle to recover from past calamities, which hinder their ability to pay their overdue loans. We want to give them an opportunity to start anew and settle their delinquencies in affordable and flexible terms through loan restructuring,” said SSS assistant vice president for Member Loans Department Boobie Angela Ocay.
Eligible for LRP are members with past due calamity loans and Salary Loan Early Renewal Program (SLERP), as well as borrowers with overdue short-term loans who live or work in declared calamity areas during tropical storms and typhoons “Ondoy” (2009); “Sendong” (2011); “Pedring,” “Quiel” and “Pablo” (2012); “Labuyo,” “Maring,” “Santi,” “Yolanda” and “Agaton” (2013); “Glenda,” “Mario,” “Ruby” and “Seniang” (2014); “Lando” and “Nona” (2015). Other calamities such as the Zamboanga armed conflict and the earthquake in Bohol and Cebu, which both happened in 2013, are also covered by the LRP.
“Among the key features of the LRP is the restructured payment term which allows the borrower to pay the loan principal and interest over a period of up to five years at a minimal annual interest rate of three percent. Upon full payment, all loan penalties will be waived, offering immense financial relief for the member-borrower. Members can also make a one-time payment if they can afford to do so,” Ocay said.
Those who would benefit from the LRP can no longer apply for restructuring or condonation under future SSS programs, but they can already renew their SSS loan six months after they have fully paid their delinquency under the LRP. Those filing benefit claims for retirement, death or total disability can participate in the program, as long as the date of contingency is on or before the last day of the availment period and the corresponding date of filing falls within the one-year LRP availment period.
“Salary and calamity loans are just two of the short-term loans covered by the LRP. Borrowers who were remiss in paying their other short-term loans such as emergency, vocational-technical, investments incentive, Y2K, and our formerly-offered educational loans and ‘Study Now, Pay Later’ plans can also take advantage of the LRP,” Ocay said.

SUCCESS STORIES
Thousands of SSS member-borrowers can attest to the importance of taking SSS’ offer of penalty condonation and longer payment periods. About 240,000 borrowers benefited from the Loan Penalty Condonation Program for Individual Members offered by SSS in 2012, which brought in collections of P2.5 billion.
Among them were Erlinda Patosa, a government employee and voluntary SSS member from Davao Oriental. “Nakita ko po na may nakapaskil sa tarpaulin sa SSS Mati kaya nalaman ko na may loan condonation at pwede po mag-avail ang mga katulad namin na may overdue na loan balance,” Patosa said.
From a total balance of over P30,000, she only paid about P11,000 over a span of 24 months. Another member, Rosalina Balagtas, a housewife, also benefited from the 2012 condonation program.
Balagtas filed for the SSS calamity loan after Mt. Pinatubo erupted in 1991. She experienced difficulty in finding jobs after the disaster struck, which impaired her ability to repay her loan. “Ako po ay natutuwa sapagkat nagkaroon ako ng pagkakataon na mabayaran ang aking loan nang mas mababa at sa mas mahabang panahon para ito ay matapos,” said Balagtas, who looks forward to enjoying her future SSS pension without any loan payment deductions./PN
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