The state-run Social Security System (SSS) on Friday said members and pensioners who were affected by the earthquake in Batanes late last month, may now avail of the calamity assistance package.
SSS President and Chief Executive Officer Aurora C. Ignacio said the SSS will provide financial assistance to its members and pensioners in Batanes following the approval of the Social Security Commission of Resolution No. 550-s.2019.
The SSS is extending its calamity assistance package to its members and pensioners who are residents of areas in Batanes which were declared by the National Disaster Risk Reduction and Management Council (NDRRMC) as under state of calamity after being hit by an earthquake last month.
Under SSS Circular No. 2019-013, the pension fund opened its Calamity Loan Assistance Program (CLAP), three-month advance pension and Direct House Repair and/or Improvement Loan to affected members and pensioners.
“We are expecting to disburse more than P16.7 million to over 1,600 members through the CLAP. We hope that the program will provide our members with the financial assistance for their short-term and immediate needs,” Ignacio said.
Through the CLAP, qualified members may be granted a loan amount equivalent to their respective average monthly salary credit (MSC) which is computed based on the average of the last 12 MSCs.
Members must have at least 36 monthly contributions, six of which should be posted within the last 12 months before the month of filing of the application. If employed, the member’s employer must be updated in the payment of their SS contributions and loan remittances, as applicable, to qualify for the program.
The loan amount will be payable in two years in equal monthly installments and has an interest rate of 10 percent per annum. Late payments will bear a penalty of one percent per month until fully paid.
However, members who have outstanding loans under the SSS’ Loan Restructuring Program, previous CLAPs, or have been granted any final benefit such as total permanent disability or retirement are not qualified to avail of said program.
Members may file for CLAP in any SSS branch. Qualified members who are overseas Filipino workers or seafarers may apply through a representative, provided that an authorization letter will be presented upon application.
Together with the application form, applicants must submit a Barangay Certification as proof that they are residents of the NDRRMC-declared state of calamity areas.
“We’ve already waived the 1 percent processing fee for the calamity loan. It may be a small amount, but we know that every single centavo is important for our members who were stricken by disaster,” Ignacio said.
On the other hand, Social Security and Employees’ Compensation pensioners whose residence are in the said earthquake-hit areas may apply for a three-month advance pension.
Applicants will be required to submit an accomplished Application for Assistance Due to Calamity or Disaster duly certified by their respective Barangay Chairman as proof that they reside in the area.
“As much as we wanted to provide immediate assistance to all affected pensioners, we regret to inform the public that those pensioners who have existing loans under the Pension Loan Program (PLP) are not qualified to avail of the program,” Ignacio said.
Aside from the CLAP and three-month advance pension, SSS members with damaged or destroyed houses may apply for the Direct House Repair and/or Improvement Loan.
To qualify, the member must have at least 24 monthly contributions, three of which should be posted within the 12-month period before the month of filing of the application. The member must not be more than 60 years old at the time of filing and is up-to-date in the payment of all other existing loans with the SSS.
Members granted any final SSS benefit, refunded SSS contributions, or previously granted with a Direct House Repair and/or Improvement Loan are not qualified to avail of the said program.
Members can borrow a maximum loan of P1 million under the program. It has an interest rate of eight percent per annum for loan amounts of up to P450,000 and nine percent per annum for over P450,000.
The loan program has a payment term of five, 10, 15 or 20 years. However, it must not exceed the economic life of the house or improvement as determined by the SSS, and the difference between the current age of the applicant and 65 years old.
“Likewise, the SSS has waived the processing fee for the housing loan. It also has a six-month moratorium in monthly amortization and interest payments. This means that its payment will begin on the seventh month which is payable in equal monthly installments during the loan term,” Ignacio said.
Interested members and pensioners can apply for the calamity loan and three-month advance pension from August 16, 2019 until November 15, 2019 while the Direct House Repair and/or Improvement Loan will be opened for a year from August 16, 2019 until August 16, 2020.
In a situation report released by the NDRRMC, the whole Province of Batanes is declared under the state of calamity as of July 29, 2019.
