The Social Security System (SSS) is reminding beneficiaries of members who passed away since April 2, 2012 and who have still not filed for an SSS Death Benefit claim, that the Loan Penalty Condonation Program will end on March 31, 2013.
Under Situation B of the Condonation Program that was implemented in 2012, beneficiaries of deceased member-borrowers with unpaid loans who will file for Death Claim within the period of April 2, 2012 up to the last working day of March 2013 can avail themselves of loan penalty condonation.
Only the outstanding loan will be deducted from the death benefit claim; 100 percent of the accumulated penalties will be condoned or written off. However, the beneficiaries must file the Death Benefit Claim and apply for condonation on or before March 31, 2013. After that date, the Condonation Program is officially ended.
The Loan Penalty Condonation Program for individual members, which ran from April 2 to September 31, 2012, differed from other condonation programs that SSS offered in the past, in that its terms and requirements depended on the situation of the member-borrower. The percentage of the penalty written off varied, depending on the reason behind the delinquency.
As of December 15, 2012, the SSS was able to collect a total of P2.878 Billion from payments made under the Condonation Program. Partial to full amnesty on loan penalties were granted to about 208,502 delinquent borrowers who availed themselves of the Condonation Program and repaid their loans either on a one-time or installment basis.