The Social Security System said Monday pension fund members should take advantage of recent stock market gains to settle their overdue accounts.
SSS officer-in-charge of the member loans department Esperanza Salvado said borrowers with delinquent accounts under the previously-offered Stock Investment Loan Program and Privatization Fund Loan Program should capitalize on the bullish 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 program enables borrowers to sell their stocks 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 to other delinquent member and housing loans, 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 said.
The SSS has registered 1,115 accounts that have benefited from the option to sell stocks program as of the end of June 2016, with collections from the overdue SILP and PFLP payments reaching 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 said.
Among the companies whose shares of stocks are held by SILP and PFLP borrowers are Jollibee Foods Corp., Manila Electric Co., San Miguel Corp., Philippine Long Distance Telephone Co., Globe Telecom Inc., Petron Corp., Ayala Land Inc. and Union Bank of the Philippines.