SSS to cut loan rates, expand pensioner coverage

The Social Security System (SSS) plans to lower interest rates on its salary and calamity loan programs while expanding self-employed coverage for over 157,000 pensioners nationwide.

In a recent advisory, SSS announced that these changes, along with other program enhancements, are expected to be implemented within the year.

SSS President and CEO Robert Joseph De Claro stated that the agency has reviewed the guidelines for the Annual Confirmation of Pensioners (ACOP) Program to simplify compliance requirements and verification processes for pensioners seeking loans and benefits.

“Our review of the current guidelines and profile of pensioners include analysis of age and geographical distribution of SSS pensioners, all possible means for ACOP compliance, and available SSS resources to facilitate convenient and easy compliance—including visit to home address by designated SSS branch or office personnel,” De Claro said.

Under the ACOP program, pensioners must report annually to maintain their monthly pension benefits as mandated by Republic Act No. 11199 or the Social Security Act of 2018.

Those required to comply include pensioners aged 80 and above residing in the Philippines starting March 2024, pensioners living abroad, as well as total disability, survivor, and dependent pensioners under guardianship.

The SSS reviewed the program after receiving concerns from pensioners about the challenges of compliance. However, De Claro reminded members that failure to comply may result in suspension or cancellation of benefits.

Additionally, he revealed that SSS is considering lowering interest rates on salary and calamity loans.

“Given the consistent, solid performance of SSS’ investment portfolio, it is now timely to revisit the interest rate of our salary and calamity loan programs toward reducing it to increase the cash proceeds from loan applications by qualified SSS members,” he said. TRACY CABRERA