SSS pension loan releases reach record high in 2022

PENSION LOANS released by the Social Security System (SSS) last year reached P5.95 billion, almost twice the P3.08 billion recorded in 2021.

This was the highest annual disbursement since 2018 when the Pension Loan Program (PLP) started, SSS President and Chief Executive Officer Rolando L. Macasaet said in a statement.

These were disbursed to 10,660 retiree-pensioners, 93% higher than P257.01 million granted to 5,753 retiree-pensioners in 2021.

“We are delighted that we have assisted many of our retiree-pensioners for their short-term and immediate financial needs. We also prevent them from becoming victims of private lending institutions that charge high interest rates and require them to surrender their ATM (automated teller machine) cards as collateral,” Mr. Macasaet said.

Applicants for the state pension fund’s PLP also grew by 85% to 127,920 retiree-pensioners in 2022 from 69,036 retiree-pensioners in 2021.

Mr. Macasaet said this was due to the easing of quarantine restrictions which allowed applicants to visit SSS branches.

Broken down, Luzon recorded the highest number of PLP applicants with 30,158 retiree-pensioners amounting to nearly P1.39 billion in pension loans, followed by the National Capital Region with 28,239 borrowers amounting to P1.43 billion.

In third place was Visayas with 17,038 loan applicants amounting to P740 million, and lastly, Mindanao with 12,917 borrowers and loans worth P590 million.

“Meanwhile, applications through My.SSS portal had 39,568 loan applicants amounting to P1.80 billion,” the SSS said.

Mr. Macasaet said 69% of borrowers filed their loan applications physically, while 31% applied online using their My.SSS account.

Approved online PLP applications also jumped by 963% to 39,568 last year, from 3,721 in 2021.

“Opening an online facility for PLP borrowers paved the way for more retiree-pensioners to access this loan program. It also offered them convenience because they could submit their application even in the comfort of their homes. Once approved, the loan proceeds are directly credited to their disbursement accounts within five working days,” Mr. Macasaet said.

The PLP offers a 10% per annum interest rate, with installment payment terms ranging from six to 24 months.

Qualified retiree-pensioners can avail themselves of a loan equivalent to three, six, nine, or 12 times their basic monthly pension but not exceeding P200,000. — AMCS