SSS vows cuts in loan interests, better service for pensioners

The Social Security System (SSS) has announced that it is working to improve services for pensioners, reduce interest rates on its salary/calamity loan programs, and pursue self-employed coverage.

“We are reviewing our guidelines on the Annual Confirmation of Pensioners (ACOP) Program to simplify requirements and other verification processes for the convenience of our pensioners,” SSS president and chief executive officer Robert Joseph M. de Claro said.

De Claro has ordered the review to address the sentiments of Philippine-based retirement pensioners above 80 years old to ensure their continuous receipt of pension benefits. By the end of 2024, there will be 157,493 such pensioners of SSS.

Review of current guidelines

“Our review of the current guidelines include the analysis of age and geographical distribution of pensioners, authorizing additional means for ACOP compliance and using available SSS resources to facilitate compliance such as by conducting home visits to pensioners through our branch or office personnel,” De Claro also said.

In the pipeline also for 2025 is the reduction of interest rate on salary loan and calamity loan programs of SSS. Currently, the interest rate for such loan programs is at 10 percent per annum.

“Given the consistent, solid performance of SSS’ investment portfolio, it is now timely to revisit the interest rate of our salary and calamity loan programs toward reducing it to increase the cash proceeds from loan applications by qualified SSS members,” De Claro also said.

The SSS’ annualized Return on Investment (ROI) from 2021 to 2024 ranged between 5.8 percent to 6.6 percent, performing well even through the Covid-19 pandemic.

Pursue coverage of self-employed

“We will also pursue better collection compliance from other groups of workers, particularly self-employed professionals such as accountants, doctors, and engineers by meeting with the Professional Regulation Commission to discuss opportunities for cooperation and ensure SSS coverage of such workers,” de Castro said.

“Our goal is to make them continue paying SSS contributions while they are gainfully self-employed even if they have reached 120 contributions already,” he added.

“These plans and programs reiterate our message last month prioritizing service excellence first and foremost while ensuring financial discipline and sustainability through an empowered SSS workforce,” De Claro added.

SSS Management and the Social Security Commission will be tackling these plans/programs and ensure implementation within 2025.