The Social Security System (SSS) estimates that it could have collected P680 million more in payments from its member-borrowers, if not for the economic impact of the coronavirus disease 2019 (COVID-19) pandemic.
Aurora Ignacio, SSS president and chief executive officer, also said during the Laging Handa virtual briefing yesterday the pension fund is preparing some condonation and restructuring programs as it takes into consideration the effect of the pandemic crisis on members’ contribution collections as well as borrowers’ loan payments.
Asked about the estimated number of member-borrowers who were unable to settle their pending payments due to the pandemic, Ignacio said: “They’re quite a lot. We estimate that we were supposed to collect around P680 million.”
Ignacio said one program that will soon be launched is the extension of contribution payments.
“For the (recent) quarter, we will be extending the payment (deadline) until the end of September, (for) areas under enhanced community quarantine. There will be an announcement, we will be releasing a circular,” Ignacio said.
The SSS chief said that as for other programs, the pension fund is just polishing the guidelines and criteria.
“We will try to come up with different condonation and restructuring programs for members who have loans with the SSS, that also includes contributions. We just need the approval of the (social security) commission,” she added.
Ignacio said due to the pandemic, the pension fund paid P2.21 billion in sickness benefits from January to July 2021, while unemployment benefit disbursements reached P820 million for the same period.
Last month, the pension fund reminded all employers to comply with their legal obligations to their employees, to avoid criminal prosecution under the provisions of Republic Act 11199 or the Social Security Act of 2018.
“Although we are still coping with the financial crisis brought about by the COVID-19 pandemic, business owners are still expected to fulfill their statutory obligations to secure the welfare and interests of their workers,” Ignacio then said. – Angela Celis
