PRRP 2 - Condonation of Penalties on Social Security Contributions

What is PRRP 2?

Note: This program has ended.

The second offering under the Pandemic Relief and Restructuring Program (PRRP) is the “Condonation of Penalties on Social Security Contributions”. It aims to assist delinquent employers by condoning penalties imposed on unpaid SS contributions and helping them get back on track to regular monthly remittance.

The application period for PRRP 2 begins on November 20, 2021 and ends on May 19, 2022.

See also Circular 2021-015 

Who are delinquent employers?

“Delinquent employers” refer to those who failed to pay the SS contributions on or before the due date as prescribed by the Social Security Commission (SSC) and the penalties accruing thereto from the date the contributions fall due until paid. This also includes employers who paid the contributions beyond the said due date but failed to pay the corresponding penalty.

Who are qualified to avail under PRRP 2?

All employers (ERs) who are delinquent in the payment of SS contributions and/or penalties covering the applicable month of March 2020 and onwards – who demonstrate a clear inability to pay the assessed delinquency arising from economic crisis, serious business losses or financial reverses, or resulting from natural calamity, or man-made disaster without fault on the part of the employer, cooperative, or household employer.

This includes the following:

• ERs with pending cases involving collection of contributions and/or penalties, except those with judgements that have acquired finality;
• ERs with pending or approved Proposals under the Installment Payment Scheme Program, provided that any outstanding balance under other approved installment payment scheme shall be considered as part of the toal delinquency, subject to re-computation;
• ERs with pending application under the Program for Acceptance of Properties Offered Through Dacion en Pago; and
• ERs subjected to Warrants of Distraint, Levy, and/or Garnishment (WDLG) processes and procedures, except those against whom a WDLG had been issued.

What are the condonable penalties under PRRP-2?

Only penalties on delinquent SS contributions shall be condoned under PRRP-2. Penalties on unpaid Employees’ Compensation (EC) contributions are not included. However, EC contributions and its corresponding penalties need to be settled first prior to the filing of PRRP-2 application.

How can employers determine the amount of their delinquency?

The amount of delinquency shall be determined and provided by the Account Officer of the Branch Office (BO) or Large Account Department (LAD) having jurisdiction over their account.

What are the terms of settling delinquencies?

Full Payment:

Employers who wish to settle the total assessed contribution delinquency in full must be able to pay within fifteen (15) calendar days from receipt of the Notice of Approval by the SSS.

Installment Payment:

Employers who opt for the installment payment are required to make a down payment of not less than five percent (5%) of the amount of the principal delinquency upon application submission. The balance shall be settled within a maximum period of twenty-four (24) months. Approved installment proposals shall earn a six percent (6%) interest per annum.

What is the schedule of monthly installment payments to settle the balance of principal delinquency?

What are the documentary requirements?

The basic documents required to be submitted by PRRP-2 applicants are as follows:

• Duly accomplished PRRP-2 Application Form;
• Affidavit attesting to the fact that the business operation was affected by economic downturns in the concerned industry, sector, or local business activities; and
• Certification from the Local Government Units and concerned government agencies that the business or household was affected by natural calamities or man-made disasters.

Together with:

• Official receipt (OR) of the down payment for approved installment proposals; and
• OR of the full payment of the EC contribution and penalty delinquency, if applicable.

What are the required supporting documents?

FOR REGULAR EMPLOYERS (Corporation, Partnership, Cooperative, Joint Venture, Association and Other Institutions)

• Certified True Copies of the latest General Information Sheet (GIS) or Articles of Incorporation, Articles of Partnership, Articles of Cooperation, Joint Venture Agreement and other documents showing the responsible officers;
• Audited Financial Statements for the last two (2) years stamped “received” by the Bureau of Internal Revenue (BIR); and
• Duly notarized Secretary’s Certificate stating that the Board of Directors/Trustees (for Corporation/Cooperative/Joint Venture), has authorized, through a Board Resolution, the name and position of the authorized person to sign and apply for the condonation program in-behalf of the employer.
• Duly notarized certificate signed by the General/Managing Partner/s indicating the name/s of the partner/s who will sign and apply for the condonation program in-behalf of the employer.

In case of closure/termination/cessation of operation, any of its former director/trustee/partner/managing head/shall sign the application and submit a duly notarized Undertaking to settle the principal amount of delinquency in his/her personal capacity and any of the following supporting documents:

1. Letter of Request for Retirement/Closure of Business
2. Barangay Certificate of Closure from the Barangay where the business is located; 
3. Original Partnership Dissolution Agreement or Notice of Dissolution for Partnerships; 
4. BIR Form 1905 duly received by the BIR

FOR SINGLE PROPRIETORSHIP AND HOUSEHOLD EMPLOYERS

1. Income Tax Return (ITR) for the last two (2) years stamped received by the BIR or a duly notarized Certification on the source(s) of funds to maintain the household (for Household Employer with no ITR); and
2. Sworn Statement/Affidavit on the reason/s for the inability to pay the assessed delinquency/ies without fault on its part. The applicant will be assisted in the preparation of the Sworn Statement/Affidavit by the responsible Account Officer.

The documentary requirements to be submitted within fifteen (15) days upon receipt of the Notice of Approval are as follows:

1. Full Payment
   1. Copy of Validated Receipt
   2. Collection List Report/E-CCL
2. Installment Plan
   1. Post-Dated Checks (PDCs) corresponding to the total amount of delinquency
   2. Collection List Report/E-CCL

Where can employers pay their assessed contribution delinquency?

Payment may be made through any SSS Branch/Office or SSS-authorized collection agents such as accredited banks, payment centers, and other collection partners.

What will happen when the employer is unable to make timely payments, misses or stops paying the assessed delinquency and even the current contributions?

The SSS-issued Notice of Approval shall be deemed cancelled under any of the following cases: 

1. Failure to pay the assessed contribution delinquency in full within fifteen (15) calendar days from receipt of Notice Approval;
2. Any default in the payment under the approved installment proposal within the period provided therein; or
3. Failure to pay the current contributions from the month of filing of the application until the approval by the SSS; and for the entire duration of the approved installment proposal, if applicable.

What are the effects of a cancelled Notice of Approval?

Upon cancellation, the SSS shall proceed to collect the due and demandable total assessed contribution delinquency, plus the two percent (2% monthly penalty through:

1. Issuance of warrant under the WDLG Program, if applicable;
2. Filing of necessary civil/criminal action against the responsible officers of the employer pursuant to Section 22 (a) in relation to Section 28 (e) and (f) of the Social Security Act of 2018;
3. Re-filing of case or any other relief/s and remedy/ies available to the SSS, if criminal case had been withdrawn;
4. Revival of case before the proper courts or any other relief/s and remedy/ies available to the SSS, if provisionally dismissed; or
5. Any relief/s and remedy/ies available to the SSS, if with conviction/judgment/final judgment.

How is the employer’s financial status being assessed?

The financial status of an employer-applicant for the condonation of penalties on SS Contributions shall be assessed using the following criterion – (a) Current Ratio, (b) Cash Flow from Operations, (c) Return on Equity, and (d) Net Loss – whichever gives favorable result to an employer-applicant.

Can employer’s with denied PRRP-2 application file for an appeal?

An employer, whose application for condonation under the PRRP-2 Program was denied by SSS, may, within thirty (30) days from receipt of Notice of Denial, file a Petition before the SSC in accordance with its rules and procedures.

How many times can employers avail of the offered PRRP-2?

Employers shall be allowed to avail of the PRRP-2 only once. Any succeeding proposal to settle its delinquency shall be limited to the existing Installment Payment Program and/or payment by way of Dacion en Pago.

Where can employers submit their PRRP-2 application?

PRRP-2 applications may be submitted/filed to the SSS Branch Office (BO) or Large Accounts Department (LAD) having jurisdiction over its account. Online application via My.SSS is not available.

PRRP 3 - Enhanced Installment Payment Program

What is PRRP 3?

Note: This program has ended.

The third offering under the Pandemic Relief and Restructuring Program (PRRP) is the “Enhanced Installment Payment Program”. It aims to assist delinquent employers who opt to pay on installment the total amount of their delinquency, in accordance with a Schedule of Monthly Installment Payments.  

The availment period for PRRP-3 is from November 23, 2021 up to November 22, 2022.

See also PRRP 3 downloadable forms

Who are covered under PRRP-3?

All Regular and Household Employers who are incapable of paying their delinquencies in full and/or have no other means to immediately settle their total obligations to the SSS, particularly those:

• With unpaid Social Security (SS) and/or Employees’ Compensation (EC) contributions, for at least six (6) applicable months, either cumulative or consecutive, including penalties, as of date of application;
• With unpaid penalties only on paid and/or late payment of contributions;
• With pending applications for installment payment under SSS Circular Nos. 2011-002 and 2018-008;
• With pending applications for Dacion en Pago; or
• With denied applications or disqualified under PRRP 2 (Condonation of Penalties on SS Contributions).

How do employers avail themselves of the program?

The Employer shall submit to the Branch Office (BO)/Large Accounts Department (LAD), whichever has jurisdiction over their accounts, within fifteen (15) calendar days from receipt of the notice of its delinquency, the following documents:

1. Application for Installment Payment;
2. Validated Contribution Payment Form/Payment Slip amounting to at least five percent (5%) down payment of the total delinquency; and
3. Supporting documents

What are the required supporting documents?

For Corporation, Partnership, Cooperative, Joint Venture, Association and Other Institutions

• Collection List for Contributions (CLC) covering the applicable period/s of delinquency;
• Validated Miscellaneous Payment Form for damages incurred due to Employer’s Liability, if any;
• Latest General Information Sheet (GIS) or Articles of Incorporation if no GIS, Articles of Partnership, Articles of Cooperation, Joint Venture Agreement and other documents showing the responsible Officers; and Duly Notarized Secretary’s Certificate or Board/Partnership Resolution authorizing any Officer of the Employer, if existing, to sign the Installment Payment Agreement (IPA). The same shall not be required if the Employer had terminated/ceased its operations.

In case the Employer had terminated/ceased its operations, any former member/s of the Board of Directors / Partners / Trustees duly appointed by a Liquidator / Administrator / Rehabilitation Receiver, if any, shall sign the Application and the IPA.

For Single Proprietorship

• Collection List for Contributions covering the applicable period/s of delinquency;
• Validated Miscellaneous Payment Form for damages incurred due to Employer’s Liability, if  any [Section 24 (a) and (b)]; and
• Current/Latest Business Permit or Department of Trade and Industry (DTI) Registration, or a Certification from the BPLO,  if the Employer had ceased operations

For Household Employers

• Collection List for Contributions covering the applicable period/s  of delinquency; and
• Validated Miscellaneous Payment Form for damages incurred due to Employer’s Liability, if any [Section 24 (a) and (b)].

Can employers with pending civil/criminal cases/judgment/final judgment/resolution/conviction apply for the program?

The SSS may still accept an application for installment payment, however, it is only upon the execution of the IPA by the Employer and the duly authorized SSS representative may the pending civil/criminal case be withdrawn or provisionally dismissed, without objection from the SSS and with the consent of the Public Prosecutor. This is without prejudice to the refiling/revival of the case if provisionally dismissed, or any other relief/remedy available to the SSS, once the IPA is terminated, due to any violation of its terms and conditions. Employers with Judgments, including those with Final Judgments/Resolutions issued by the Courts and other quasi-judicial bodies, may also avail of this Program.

How about employers subjected to the warrants of distraint, levy and/or garnishment (WDLG) program?

Employers with issued Preliminary Assessment Notice (PAN)/Final Assessment Notice before Seizure (FANS) may apply for installment payment except those with issued Warrants of Distraint Levy and/or Garnishment.  Likewise, Employers with issued WDLG but returned unsatisfied, either partially or fully, may avail of this Program for the remaining balance of their delinquency.

What are terms and conditions under the Installment Payment Agreement (IPA)?

1. The Employer must remit current contributions every month/quarter as they fall due, during the entire duration of the IPA;
2. In the event of any default in the payment of two (2) monthly installments, whether consecutive or not, the IPA shall be terminated and the remaining delinquency shall become due and demandable. The Employer shall be considered in default if the dishonored check is not replaced in cash or Manager’s Check (MC) within five (5) working days from date of receipt of the Notice of Dishonored Check;
3. The Employer must pay in advance the sickness and maternity benefits of its employees, if applicable;
4. The Employer must pay all damages incurred due to Employer’s Liability, if any, during the term of the IPA.
5. The total delinquency shall be payable in accordance with the Schedule of Monthly Installment Payments, as follows:

• The Employer may be allowed to pay in full the principal obligation first and the corresponding penalties to be paid on installment;
• The Employer may be allowed to apply the monthly installment/s to the principal ahead of the payment for the penalty/ies;
• The Employer may be allowed to pay in full the remaining delinquency at any time during the term of the IPA, subject to a re-assessment of the penalty/ies, if applicable.

What are the other obligations of the employer under this program?

a. Within ten (10) calendar days from receipt of the Notice of Conditional Approval, the Employer shall submit to the BO/LAD:

• • five (5) original copies of the signed and duly notarized IPA
  • the Installment Payment Schedule
  • post-dated checks (PDCs) as stated in the IPA.

None submission of the above will consider the Application denied.

b. The Employer may be allowed not to issue PDCs if the delinquency including penalty/ies, less the down payment, amount to Fifty Thousand Pesos (P50,000) and below. In lieu of PDCs, the Employer shall execute a duly notarized Undertaking in favor of the SSS to pay its delinquencies in accordance with the above-mentioned Schedule of Monthly Installment Payments.

c. The Employer may submit PDCs issued by a Third Party, provided that a duly notarized Joint Undertaking in favor of the SSS shall be executed by both the Employer and the said Third Party.

d. The Employer and/or Third Party may be allowed to replace or cancel the issued PDCs in case of any change in its authorized signatory or closure of bank account or in case of any advance payment/s to be made, provided that a written notice to the SSS shall be sent at least two (2) working days before due date.

Interested Employers are encouraged to get in touch with their respective SSS Account Officers.

PRRP 4 - Housing Loan Restructuring and Penalty Condonation Program (HLRPCP)

What is PRRP 4?

Note: This program has ended.

The fourth offering under the Pandemic Relief and Restructuring Program (PRRP) is the “Housing Loan Restructuring and Penalty Condonation Program” or HLRPCP. It aims to assist delinquent member- borrowers, their legal heirs or designated successor-in-interest by condoning penalties on their past due housing loans. Penalty condonation can be availed of either through 1) full payment of the loan, or 2) 50% down payment of the total loan amount and by restructuring of the remaining 50% to be paid within twelve (12) monthly equal installments.

The availment period for PRRP 4 is extended until May 21, 2022.

See also Circular 2021-013 and downloadable forms

See also Circular 2022-005 on the Extension of Availment Period and Amendment to the Terms and Conditions of Pandemic Relief and Restructuring Program 4 – Housing Loan Restructuring and Penalty Condonation Program (HLRPCP)

Who are covered under PRRP 4?

1. For Condonation without Restructuring

1.1  All housing loan borrowers, duly designated successor-in-interest/legal heirs with past due housing loan obligations, whether or not the original or previously restructured term has already expired; or

1.2  Housing loan borrowers whose property has been foreclosed and undergone sheriff auction sale with SSS as the winning bidder and the Certificate of Sale has not yet been registered, under the following SSS housing loan programs:

• • Direct Individual Housing Loan Program including duplex housing loan accounts
  • Direct Housing Loan Facility for Overseas Filipino Workers (OFWs)/Trade Union Members (TUMs)

2. For Condonation with Restructuring

All housing loan borrowers/successor-in-interest/legal heir/s with past due housing loan obligations under the following SSS housing loan programs, provided, that at least one (1) month of the original or previously restructured loan term remains:

• • Direct Individual Housing Loan Program including duplex housing loan accounts
  • Direct Housing Loan Facility for OFWs/TUMs

Who are eligible to apply?

Eligible to apply are the following:

1. All housing loan borrowers/successor-in-interest (who have assumed the original mortgage as supported by legal documents)/legal heir/s (of deceased housing loan borrower, provided the estate has been settled either through judicial or extrajudicial process) with past due* housing loan obligations under the following SSS housing loan programs:

• Direct Individual Housing Loan Program including duplex housing loan accounts
• Direct Housing Loan Facility for OFWs/TUMs

2. For successor/s-in-interest and legal heir/s applicants, the applicant must be a member of SSS who has at least twelve (12) continuous contributions prior to application and a total of at least twenty-four (24) monthly contributions to avail of the Condonation with Loan Restructuring. Otherwise, successor/s-in-interest and legal heir/s applicants shall be eligible to Condonation without Restructuring only.

3. Under Condonation with Restructuring, the housing loan account must not be expired with at least remaining one (1) month of the original or previously restructured loan term.

*Past due – the housing loan is delinquent for a period of at least six (6) months as of the filing date of application within the condonation period.

What are the payment terms?

1. For Condonation without Restructuring

1.1  Full Payment – one-time payment (cash or manager’s check) of the outstanding principal, interests, insurance dues and legal expenses within ninety (90) calendar days from receipt of notice of approval of application.

2. For Condonation with Loan Restructuring

2.1  50% down payment of the outstanding principal, interests, insurance dues and legal expenses within ninety (90) calendar days from receipt of notice of approval of application.

2.2  Restructuring of the remaining 50% payable in twelve (12) monthly equal installments. The first amortization shall start on the month following the date of receipt of the applicant’s 50% down payment. Payment deadline shall be on the 10th day of the month following the applicable month.

2.3  For successor/s-in-interest and legal heir/s applicants, their age must not exceed sixty (60) years old at the time of the restructured loan maturity.

2.4  In case of several successors-in-interest, the age of the oldest successor-in-interest/legal heir shall be considered in the computation of the restructuring term.

How much is the interest rate?

The interest rate is 6% per annum, which shall be fixed for the term of loan.

How much penalty will be charged in case of unpaid monthly amortization on the structured loan?

Any unpaid monthly amortization on the restructured loan after due date shall be subjected to a penalty of 1% per month until fully paid or foreclosed.

What happens upon full payment of the loan?

All unpaid penalties shall be condoned upon full payment of outstanding principal balance, interests, insurance dues, legal expenses including attorney’s fees, if any, either thru cash payment or loan restructuring.

What will happen when the loan becomes delinquent beyond six (6) months or when the term expires and there is still an outstanding balance?

Under loan restructuring, the principal balance should be zero at the end of the restructured loan term. If the restructured loan term expires and the loan remains outstanding, or if the restructured loan becomes delinquent beyond six (6) months, the proportionate balance of the condonable penalties shall revert to and form part of the total obligation which shall be due and demandable, and the mortgage shall be subject to immediate foreclosure pursuant to the terms and conditions of the original Mortgage Contract or Supplemental/ Amended Mortgage Contract, as the case may be.

How is the restructured loan computed?

The restructured amount shall be the sum of the outstanding principal balance, interests, insurance dues, legal expenses including attorney’s fees, if any.

Are restructured loans covered by insurance? How are these paid?

The original housing loan borrower/designated successor/s-in-interest/legal heir/s shall be covered by Mortgage Redemption Insurance (MRI) based on the restructured loan amount.

The mortgaged property shall be covered by Fire and Earthquake Insurance based on either the original loan or restructured loan amount, whichever is higher.

Payment of insurance premiums shall be included in the housing loan amortization to be paid by the housing loan borrower/ successor/s-in-interest/legal heir/s for the duration of the restructured loan.

When are restructured loans considered in default?

A restructured loan shall be considered in default if it has accumulated arrearages equivalent to at least six (6) monthly amortizations. In such cases, SSS shall pursue the foreclosure of the mortgage.

What are the other terms and conditions of PRRP 4?

1. For Condonation without Restructuring

1.1  Applicant shall submit a duly accomplished application form and be required to pay a processing fee of Five Hundred Pesos (Php500.00), receipt of which shall be attached to the filed application form.

1.2  Applicant shall be required to pay in full/cash payment all due and demandable arrears composed of outstanding principal, interest, insurance dues and legal expenses within ninety (90) calendar days from receipt of notice of approval. In case the full amount of outstanding principal, interest, insurance dues and legal expenses is not fully settled/paid within ninety (90) calendar days, all unpaid balances shall be deemed due and demandable. Any partial payment made during the ninety (90) days period shall be treated as regular payment subject to usual application of payment including penalty.

2. For Condonation with Restructuring

2.1  Applicant shall submit the accomplished application form and pay a processing fee of Five Hundred Pesos (Php500.00), official receipt of which shall be attached to the filed application form.

2.2  Applicant shall be required to pay 50% of all due and demandable arrears composed of outstanding principal, interest, insurance dues and legal expenses within ninety (90) calendar days from receipt of notice of approval.

2.3  The remaining 50% of the outstanding principal, interest, insurance dues and legal expenses shall be restructured and shall be payable in twelve (12) monthly equal installments.

2.4  In case the 50% of outstanding principal, interest, insurance dues and legal expenses amount is not fully settled/paid within ninety (90) calendar days, all unpaid balances shall be deemed due and demandable. Any partial payment made during the ninety (90) days period shall be treated as regular payment subject to usual application of payment which shall include the penalty.

2.5  The applicant must be updated in the payment of the real property tax. Authenticated/ certified photocopy of the official receipts or tax clearance shall be submitted upon filing of the application.

2.6  The housing loan borrower/successor/s-in-interest/legal heir/s shall be required to execute a duly notarized Supplemental Mortgage Contract (SMC) and promissory note incorporating the new terms and conditions of the restructured loan. Thereafter, they shall also be responsible for the annotation of SMC on the TCT/CCT at the Registry of Deeds.

2.7  Failure of the housing loan borrower/successor/s-in-interest/legal heir/s to sign and submit the SMC and Promissory Note within ninety (90) calendar days from the date of receipt of notice of approval with attached SMC and Promissory Note form shall cause the cancellation of the application for condonation and restructuring.

2.8  Failure of the housing loan borrower/successor/s-in-interest/legal heir/s to submit the SMC to the Registry of Deeds for annotation on the TCT/CCT of the collateral property within ninety (90) calendar days from receipt of the SMC signed by the SSS-designated signatory shall cause the cancellation of the application for condonation and restructuring.

What are the documentary requirements needed?

The member-borrower must submit the following:

1. Application form
2. SS ID/UMID Card. In the absence of an SS ID/UMID Card, any government-issued ID cards/documents with photo, signature and underwent biometric data capture process such as, but not limited to, the following:

• •   Social Security (SS) Card
  •   Alien Certificate of Registration
  •   Driver’s License
  •   Firearm Registration
  •   License to Own and Possess Firearms
  •   National Bureau of Investigation (NBI) Clearance
  •   Passport
  •   Permit to Carry Firearms Outside of Residence
  •   Postal Identity Card
  •   Seafarer’s Identification & Record Book (Seaman’s Book)
  •   Voter’s ID Card

3. Notarized Special Power of Attorney (SPA) notarized within one year from the date of application, IDs of both representative and applicant, if applicant is representative of the housing loan borrower/successor-in-interest/legal heir/s.
4. If Legal Heir/s – Philippine Statistics Authority (PSA)-issued copy of borrower’s Death Certificate and Decision on the Judicial Settlement and Certificate of Finality of Decision/Notarized Extra-Judicial Settlement (published), affidavit and Special Power of Attorney (if applicable).
5. If successors-in-interest – Notarized Deed of Sale/Deed of Sale with Assumption of Mortgage, applicable affidavit and Special Power of Attorney (if applicable).
6. Updated Tax Declaration of Land and Building and Official Receipt or Tax Clearance for the current year (for Condonation with Restructuring).

Where can the member-borrower file the application?

1. For NCR- Housing and Acquired Asset Management Department (HAAMD), SSS Main Office
2. For Outside NCR- Housing and Acquired Asset Management Section (HAAMS)

2.1 Central Luzon – HAAMS Tarlac

2.2 Southern Luzon – HAAMS San Pablo

2.3 Northern Luzon – HAAMS Baguio

2.4 Bicol Region – HAAMS Naga

2.5 Central Visayas – HAAMS Cebu

2.6 Western Visayas – HAAMS Bacolod

2.7 Southern Mindanao – HAAMS Davao

2.8 Northern Mindanao – HAAMS Cagayan De Oro

2.9 Western Mindanao – HAAMS Zamboanga

PRRP 5 - Short-Term Member Loan Penalty Condonation Program (STMLPCP)

What is PRRP 5?

Note: This program has ended.

The fifth offering under the Pandemic Relief and Restructuring Program (PRRP) is the “Short-Term Member Loan Penalty Condonation Program”or STMLPCP. It aims to assist members to pay their past due loans and bring back good records to SSS. Penalty condonation can be availed of either through 1) one-time payment term, or 2) installment term wherein member-borrowers shall pay the 50% down payment of the total loan amount and by restructuring of the remaining 50% to be paid within siz (6) monthly equal installments.

The availment period for PRRP 5 is extended until May 14, 2022.

See also Circular 2021-014

See also Circular 2022-006 on the Extension of the Pandemic Relief and Restructuring Program 5 (PRRP5) – Short-Term Member Loan Penalty Condonation Program (STMLPCP) Availment Period

What are the qualifying conditions for this program?

1. All member-borrowers with past due* short-term member loan/s for at least six (6) months as of the first day of condonation period (whether or not the original term has already expired). Short-Term Member Loans shall include the following:

1.1  Salary Loan

1.2  Calamity Loan

1.3  Salary Loan Early Renewal Program (SLERP)

1.4  Emergency Loan

1.5  Restructured Loans under the Loan Restructuring Program (LRP) implemented in 2016 to 2019.

*Past due – the loan is delinquent for a period of at least six (6) months as of the first day of the condonation period.

2. Member-borrowers who:

2.1 Are under sixty-five (65) years old at the end of the installment term (for installment payment)

2.2 Have not been granted any final benefit, i.e., permanent total disability or retirement

2.3 Have not been disqualified due to fraud committed against the SSS

3. Member-borrowers who will file their final benefits application for permanent total disability or retirement, whose contingency date is on or before the last day of the availment period of the condonation program. Said final benefit claim must be filed within the availment period.

4. Heirs or beneficiaries of deceased member borrowers who will file the death benefit application, whose contingency date is on or before the last day of the availment period of the condonation program. Said death claim must be filed within the availment period.

What are the payment terms?

The sum amount of all due and demandable arrears composed of outstanding principal and interest of the member-borrower’s past due loan/s shall be consolidated into one Consolidated Loan. 

1. One-time Payment – full payment of the Consolidated Loan within thirty (30) calendar days from receipt of the notice of the approval of the Penalty Condonation Application in a single payment transaction. No staggered/partial payments are allowed even if the required payment is completed within the 30-day prescribed period.

NOTE: Member-borrowers who are sixty-five (65) years old or older who will not file their final benefit claim within the availment period may avail of One-time Payment term only.

2. Installment Term

2.1  50% down payment – full payment of 50% of the Consolidated Loan within thirty (30) calendar days from receipt of the notice of the approval of the Penalty Condonation Application in a single payment transaction. No staggered/partial payments shall be allowed even if the required payment is completed within the 30-day prescribed period.

2.2  The remaining 50% shall become Restructured Loan 1 (RL1) and shall be paid in six (6) equal monthly installments starting from the month following the end of the thirty (30) calendar days period stated in Item 2.1.  Late payments shall be subject to imposition of 1% penalty per month after its due date during RL1’s payment term.

How does this penalty condonation works?

1. Unpaid penalties of the loans shall be condoned as follows:

1.1  Under One-time Payment Term – 100% of the consolidated penalty shall be condoned upon full payment of the Consolidated Loan within the approved payment period.

1.2  Under Installment Term – 50% of the consolidated penalty shall be condoned upon payment of the 50% down payment within the approved payment period.  The remaining 50% penalty shall be condoned after full payment of the RL1 within the approved terms and conditions.

2. Any partial payment made for the Consolidated Loan under One-time Payment or 50% down payment shall not entitle the member-borrower to condonation of penalty.  The Penalty Condonation Application shall be deemed cancelled, without prejudice to re-submission of the application within the availment period.  However, any partial payment made for the cancelled application shall be treated as regular payment and shall be applied to the oldest outstanding short-term member loan in the following order of priority:  penalty first, then to interest and last to principal.  Any excess after posting of payment shall be applied to the second oldest outstanding short-term member loan and so on.

3. The balance of the RL1 should be zero at the end of the term.  Otherwise, the unpaid principal of RL1 and the proportionate balance of condonable penalty shall become part of a new principal under Restructured Loan 2 (RL2). The RL1 shall be closed and RL2 shall be setup.

How much are the interest rates of RL1 and RL2?

How to apply for PRRP 5?

1. Except for the following members with Death, Disability, Retirement (DDR) claims which can only be filed thru over-the-counter (OTC) filing, all member-borrowers must apply for the Penalty Condonation Program through the SSS website by accessing his/her My.SSS account.

1.1 Self-Employed (SE);

1.2 With dependents ;

1.3 Mine Workers ;

1.4 Racehorse Jockeys; and

1.5 Incapacitated retiree subject for representative payee

2. Payment Reference Number (PRN) under the Real Time Processing of Loan (RTPL) shall be used for Consolidated or Restructured Loan payments.

3. In case the full amount for the One-time Payment term or the 50% down payment of the Consolidated Loan was not settled within thirty (30) calendar days, a re-submission of the condonation application may be allowed provided that it is made on or before the last day of the program implementation.

4. Amount due under the approved condonation application under the RL1 or RL2 including all accrued interests and penalties must be fully paid before the member-borrower can avail of other SSS short-term member loan programs.