Social Security System (SSS) members with overdue accounts for previous SSS loans used for investing in equities are urged to take advantage of recent stock market gains to settle their past due debt obligations through the SSS Option to Sell Shares of Stocks Program.
SSS Officer-in-Charge of Member Loans Department Esperanza E. Salvado said borrowers with delinquent accounts under the previously-offered Stock Investment Loan Program (SILP) and Privatization Fund Loan Program (PFLP) should capitalize on the surging stock market.
“The stock market performance this year has been highly encouraging. We call on delinquent SILP and PFLP borrowers to avail now of the Option to Sell Shares of Stocks Program to secure generous gains from unloading their stocks. More importantly, it helps stop their debt burden from further ballooning,” she said.
Launched in February 2015, the Option to Sell Shares of Stocks Program enables borrowers to sell their stocks bought using their SILP and PFLP loans at the prevailing market price as determined by an SSS-accredited stock broker.
The resulting proceeds, net of the broker’s commission, taxes and other fees, would be applied to the outstanding SILP or PFLP loan balance, and then to other delinquent member loans and housing loan, if any. Any excess amount from the sale of stocks would be refunded to the borrower.
“If the generated funds from the sale of stocks are inadequate to cover the overdue SILP or PFLP loan balance, the member can pay the remaining amount in cash, or through deduction from salary loan renewal or from final benefit claims. But until the loan is fully paid, the usual monthly penalties and interest will apply,” Salvado explained.
Since the launch, the state-run pension fund has recorded a total of 1,115 accounts that have benefited from the Option to Sell Shares of Stocks Program as of the end of June 2016, while collections from these overdue SILP and PFLP payments have reached P63.56 million.
“However, there are still nearly 7,700 SILP and PFLP accounts that remain unpaid. If their loans remain delinquent, the borrowers’ principal, penalties and interest would be deducted from their final benefit claims such as retirement, total disability or death,” Salvado noted.
Among the companies whose shares of stocks are held by SILP and PFLP borrowers include Jollibee Foods Corporation, Manila Electric Company, San Miguel Corporation, Philippine Long Distance Telephone Company, Globe Telecom, Petron Corporation, Ayala Land and Union Bank of the Philippines.
In the past, SSS members keen to invest in the stock market could borrow funds under the SILP, which was launched in the 1980s. Meanwhile, the PFLP was introduced in 1994 to serve as the lending facility for SSS members interested to buy stocks during the initial public offering for Petron, which was then government-owned, as well as to purchase Meralco stocks previously held by the SSS.
To avail of the program, interested borrowers should submit their application form along with the required supporting documents to any SSS branch or to the SILP Section of the MLD at the 11th Floor of the SSS Main Office in Diliman, Quezon City.
Supporting documents include the notarized
Special Power of Attorney executed by the borrower authorizing the SSS to sell the shares of stocks; accomplished Broker Signature Cards; Customer Account Information Form; photocopy of two government-issued identification cards with picture and signature; and Statement of Account issued by the SILP Section.
Designated representatives can submit the needed documents to the SSS as long as they have an authorization letter duly signed by the corresponding loan borrower. For more details, borrowers can contact the SILP Section of the SSS MLD at 435-9862 or 920-6401 local 5887 and 5915.
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