Pandemic Relief and Restructuring Program 5

Short Term Member Loan Penalty

Condonation Program (STMLPCP)

Presented by:
Member Loans Department

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COURSE OUTLINE

STMLPCP Overview

Guidelines/Terms and Conditions

Sample Cases

STMLPCP Process
• Sending of Notice of Invitation to individual members and employers
• STMLPCP General Process
• STML Penalty Condonation for DDR applicants

Frequently Asked Questions

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As part of the Pandemic Relief and Restructuring Programs, SSS implements
the PRRP 5 - Short-Term Member Loan Penalty Condonation Program
(STMLPCP) with the aim to:

• provide penalty condonation of the consolidated delinquent/past due loan

account(s) of member-borrowers

• provide reprieve for member-borrowers whose livelihood and financial

capacity might be affected by the recent pandemic

• provide delinquent member-borrowers the opportunity to fully pay their

short-term member loans, including those with past due restructured loans

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What are the STMLPCP GUIDELINES

Circular 2021-014
dated 29 October 2021

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 WHAT IS THE COVERAGE OF THE PROGRAM?
The STMLPCP covers the following past due* short-term member loan/s:

1. Salary Loan; 4. Emergency Loan; and

2. Calamity Loan; 5. Restructured Loans under the Loan
3. Salary Loan Early Renewal Restructuring Program (LRP) implemented
Program (SLERP); in 2016 to 2019

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

AVAILMENT PERIOD
Three (3) months which shall commence from 15 November 2021 and shall last
until February 14, 2022.

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 WHO ARE QUALIFIED TO AVAIL OF THE STMLPCP?
1. All member-borrowers with past due loans for at least six (6) months as of the first day of
condonation period (e.g. past due as of November 15, 2021).

2. Member-borrowers who:
a. Are under sixty-five (65) years old at the end of the installment term (for installment payment);
b. Have not been granted any final benefit, i.e. permanent total disability or retirement;
c. 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
(February 14, 2022) of the condonation program.
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 (February 14,
2022) of the condonation program.

Note: Final benefit claim must be filed within the availment period of STMLPCP
(from November 15, 2021 to February 14, 2022)
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 WHAT WILL HAPPEN TO THE DELINQUENT LOAN/S IF
MEMBER APPLY FOR THE STMLPCP?
The sum of all outstanding principal and interest of the member-
borrower’s past due loan/s shall be consolidated into one
Consolidated Loan.

Example:
Loan Type Principal Interest Total
Salary Loan (01/12/2016) 3,965.17 991.73 4,956.90
Emergency Loan (10/15/2018) 6,317.94 1,113.52 7,431.46
Calamity Loan (01/18/2020) 15,000.00 900.00 15,900.00
Consolidated Loan 28,288.36

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 WHAT ARE THE PAYMENT TERMS AVAILABLE?

1. One-Time Payment – full payment of the Consolidated Loan within thirty (30)
calendar days from receipt of the notice of approval of the Penalty
Condonation Application in a single payment transaction.
Note: “Receipt of notice” shall be deemed the date when the electronic notice was sent to the applicant’s email address.

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.

No staggered/partial payments of the Consolidated Loan are allowed, even if the required
payment is completed within the 30-day prescribed period.

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 CASE 1 If Member A will apply for the Short-Term Loan Penalty
(with multiple outstanding loans) Condonation Program under ONE-TIME PAYMENT TERM:

Member A has three loans which are past due Emergency Calamity Consolidated
for at least six (6) months as of November 17, Loan Type Salary Loan Loan Loan Loan
2021 with the following balances.
Salary Loan 2016 Date Granted 01/12/2016 10/15/2018 01/18/2020 11/17/2021
Principal 3,965.17 for collection Principal 3,965.17 6,317.94 15,000.00 25,283.11
Interest 991.73 for collection
Interest 991.73 1,113.52 900.00 3,005.25
Penalty 1,062.06 condonable
Outstanding Balance 6,018.96 For collection 4,956.90 7,431.46 15,900.00
For full payment within 30 days (due on 12/17/2021) 28,288.36
Emergency Loan 2018
Principal 6,317.94 for collection Condonable
Interest 1,113.52 for collection Penalty 1,062.06 814.58 320.43 2,197.07
Penalty 814.58 condonable ▪ The outstanding principal and interest of the three loans will
Outstanding Balance 8,246.04 be summed up into one consolidated loan amounting
PhP28,288.36 and will be payable within thirty (30)
Calamity Loan 2020 calendar days from approval of the application
Principal 15,000.00 for collection
Interest 900.00 for collection ▪ The total penalty amounting PhP2,197.07 shall be
Penalty 320.43 condonable condoned upon full payment of the consolidated loan within
Outstanding Balance 16,220.43 thirty (30) days.

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 CASE 2
(with one outstanding loan only)
a. If Member B will apply for the Short-Term Member
Member B availed an Php11,000.00 salary loan in Loan Penalty Condonation Program under one-
2018 with the following balances as of November time payment term:
30, 2021.
Principal P 5,673.29
Salary Loan 2018 Interest 1,560.24
for Consolidated Loan 7,233.53
Principal P 5,673.29 collection payable in full within 30 calendar days
for
Interest 1,560.24 collection ▪ his outstanding principal and interest shall be
consolidated and will become payable in one-time
Penalty 1,564.45 condonable full payment scheme within thirty (30) calendar days
Outstanding from receipt of the Notice of approval of the Condonation
Application. Due date will be on December 30, 2021.
Balance 8,797.98
▪ The penalty amounting to Php1,564.45 shall be fully
condoned after payment of the consolidated loan
within thirty (30) days.

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 WHAT ARE THE PAYMENT TERMS AVAILABLE?
2. Installment Term –
a. 50% downpayment – 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.

b. The remaining 50% shall become Restructured Loan (RL1) and shall be
paid in six (6) equal monthly installment starting from the month
following the end of the 30-calendar day period from receipt of the notice of
approval of STMLPCP.
Note: “Receipt of notice” shall be deemed the date when the electronic notice was sent to the applicant’s email address.

No staggered/partial payments of the Consolidated Loan are allowed, even if the required
payment is completed within the 30-day prescribed period.

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 If Member A will apply for the Short-Term Loan Penalty
CASE 1 Condonation Program under 50% DOWNPAYMENT & 50%
(with multiple outstanding loans)
INSTALLMENT TERM:
Member A has three loans which are past due Emergency Calamity Consolidated
for at least six (6) months as of November 17, Loan Type Salary Loan Loan Loan Loan
2021 with the following balances. Date Granted 01/12/2016 10/15/2018 01/18/2020 11/17/2021
Principal 3,965.17 6,317.94 15,000.00 25,283.11
Salary Loan 2016 Interest 991.73 1,113.52 900.00 3,005.25
Principal 3,965.17 for collection For collection 4,956.90 7,431.46 15,900.00 28,288.36
Interest 991.73 for collection Total Condonable
Penalty 1,062.06 condonable Penalty 1,062.06 814.58 320.43 2,197.07
Outstanding Balance 6,018.96 50% payable within 30 days (due on 12/17/2021) 14,144.18
50% for restructuring payable in six (6) monthly installments
Emergency Loan 2018 at 3% interest per annum 14,144.18
Monthly amortization 2,378.03
Principal 6,317.94 for collection
Interest 1,113.52 for collection Amortization period Jan to June 2022
Penalty 814.58 condonable
50% Condonable Penalty 1,098.54
Outstanding Balance 8,246.04
▪ PhP14,144.18 shall be payable within thirty (30) calendar days. The
Calamity Loan 2020 remaining 50% shall be restructured and will be payable in six (6) equal
Principal 15,000.00 for collection monthly installments subject to an interest rate of 3% per annum.
Interest 900.00 for collection ▪ 50% of the penalty or PhP1,098.54 shall be condoned upon payment of the
Penalty 320.43 condonable 50% consolidated loan within thirty (30) days and the remaining 50%
Outstanding Balance 16,220.43 penalty shall be fully condoned upon full settlement of the restructured loan
within the approved payment term.

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 b. If Member B will apply for the Short-Term Member Loan Penalty Condonation
CASE 2 Program under 50% downpayment and 50% installment term:
As of November 30, 2021
Sample new payment terms and due date below:
Principal P 5,673.29
Condonation Application Date 11/30/2021
Interest 1,560.24 50% downpayment due date 12/30/2021
Total Consolidated Loan 7,233.53 First Amortization month of RL1 01/2022
Due date of the first amort month 02/28/2022
Total Condonable Penalty 1,564.45
Last Amortization month of RL1 06/2022
50% of the Consolidated 3,616.77
Loan payable in full within 30 calendar days ▪ 50% or PhP782.22 of the penalty shall be condoned upon full
payment of the 50% Consolidated Loan within thirty (30) days.
50% for restructuring 3,616.77
payable in six (6) months ▪ Remaining 50% penalty shall be condoned upon full settlement of
Monthly Amortization 607.95 the Restructured Loan within the approved six (6) months payment
term.
▪ 50% of the consolidated loan shall be payable within thirty
(30) days from approval of the condonation application. Due date
▪ If Member B paid the 50% downpayment of the Consolidated
will be December 30, 2021.
Loan but fails to pay the RL1 monthly amortization within the
approved term or upon expiration of RL1 term and the
▪ After payment of the 50% consolidated loan within thirty (30)
restructured loan remains outstanding, the remaining balance
days, the remaining 50% shall be setup into a Restructured
of RL1 plus the proportionate portion of the condonable penalty
Loan and shall be assigned a monthly amortization of
shall be converted into a defaulted restructured loan (RL2)
PhP607.95 payable in six (6) months, with an interest rate of
and shall henceforth be charged with a 10% interest per
3% and 1% penalty per month on unpaid amortization after the
annum until fully settled.
due date.

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 PAYMENT REMINDERS
▪ Under installment term, the member-borrower must be under sixty-five (65) years old at the end
of the installment term, otherwise, member-borrower shall only qualify under the One-time
Payment term.

▪ DDR applicants shall only be allowed to avail of the one-time payment term through deduction
from the proceeds of the final benefit claim.

▪ A Payment Reference Number (PRN) shall be issued with the amount and due date for each
required payment (for both Consolidated Loan and Restructured Loan)

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 WHAT ARE THE CONDITIONS FOR CONDONATION?

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

Under One-Time Payment Term Under Installment Term

100% of the consolidated penalty shall 50% of the consolidated penalty shall be
be condoned upon full payment of the condoned upon payment of the 50%
Consolidated Loan within the downpayment within the approved
approved payment period. payment period.

The remaining 50% penalty shall be fully

condoned after full payment of the
RL1 within the approved terms and
conditions.

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 WHAT ARE THE CONDITIONS FOR CONDONATION?
2. The Penalty Condonation Application shall be deemed cancelled and shall not
entitle the member-borrower to condonation of penalty, if partial payment is made
for the Consolidated Loan under One-time Payment or 50% downpayment.

o 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.

o Any excess after posting of payment shall be applied to the second oldest
outstanding short-term member loan and so on.

o A re-submission of the application is allowed within the availment period based

on the recomputed loan balance after the posting of partial payment/s, if any.
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 WHAT ARE THE CONDITIONS FOR CONDONATION?

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.

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INTEREST RATE AND PENALTY
TYPE INTEREST RATE
RL1 For installment term, RL1 shall be
subject to interest rate of 3% per
annum computed on a diminishing
principal balance over the six (6)
months payment term.
PENALTY
A penalty of 1% per month shall
be charged against RL1’s unpaid
amortization after its due date
during RL1's payment term.

RL2 RL2 shall be charged with an interest

rate of 10% per annum until fully paid.

Note: The full amount of RL2 including

all accrued interests shall be
immediately due and demandable.

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 OTHER CONDITIONS
1. All member-borrower must apply for the Penalty Condonation Program through
the SSS website by accessing his/her My.SSS account.

Exemption to this are the following members with Death, Disability, Retirement
(DDR) claims which can only be filed through over-the-counter (OTC) filing:
a. Self-Employed (SE);
b. With dependents;
c. Mine Workers;
d. Racehorse Jockeys; and
e. 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.

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 OTHER CONDITIONS

3. In case the full amount for the One-time Payment term or the 50%
downpayment 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 on February 14, 2022.

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 loan programs.

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 WHAT ARE THE REQUIREMENTS?
1. Member must be registered in the My.SSS online facility for online filing
of the application.

2. Member must have a qualified short-term member loan that is past due
for a period of at least six (6) months as of the first day of the STMLPCP
period (November 15, 2021).

3. Member must have an updated contact information i.e. mailing/home

address and email address.

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Sending of Notice of Invitation for STMLPCP
SSS will electronically send Notice of Invitation to the following stakeholders:
▪ Individual member-borrowers; and
▪ Employers

Notification through the following channel:

1. Sending through their registered email address.
2. Posting through the “Inbox” facility in My.SSS

Purpose:
1. For stakeholders awareness on the program details; and
2. Give member-borrowers the opportunity to learn and understand the program’s purpose.

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 STMLPCP GENERAL PROCESS FLOW
Access “Apply for STMLPCP”
under eServices in My.SSS Member will receive the Notice of
(www.sss.gov.ph) account Loan Approval thru (1) Inbox folder
of their My.SSS account and (2) thru
1 3 member’s registered email.

2 4
Select preferred term and
submit the application
together with the Promissory
Note as well as Certification
and Undertaking
Pay the issued STMLPCP PRN within the
Note: It is important that the member reads and understand fully the
STMLPCP documents including the Terms and Conditions and issued approved due date to any SSS accredited
Disclosure Statement (for installment term only) prior to submission of the
application.
collecting partners, bank or non-bank or SS
Branches with tellering facility 23
STML Penalty Condonation for DDR applicants
Qualified DDR applicants:
▪ whose Final benefit application is filed within the STMLPCP availment period
▪ whose Contingency date is within the STMLPCP availment period

Automatic Sending
of Notice of
Automatic Qualification on
Member’s
Condonation of Penalty Condonation
application and Approval of the
penalty of eligible Program to
processing for DDR member’s DDR
short-term member member’s/benef’s
claim (online or benefit
loan accounts registered email
OTC)
address (for those
with loans qualified
under STMLPCP)

Note: DDR filer need not accomplish a separate application form for STMLPCP since member-borrower’s
past due account/s is/are automatically qualified based on above stated eligibility requirements.
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Frequently Asked Questions

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 1. What is Short-Term Member Loan Penalty Condonation Program
(STMLPCP)?

The STMLPC Program is one of the Pandemic Relief and Restructuring Program (PRRP)
offerings of SSS which aims to provide member-borrowers with delinquent/past due loans,
whose livelihood and financial capacity might be affected by the recent pandemic, a reprieve
Answer from paying the penalty of their loans through an opportunity to fully settle their obligations
in an affordable payment term.

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 2. What will happen to the member’s delinquent loan/s under the
STMLPCP?

Under the STMLPCP, the total amount of the outstanding principal and interest of the
member’s past due* loans shall be consolidated into one CONSOLIDATED LOAN. This can be
settled through a payment term applicable to member-borrower's paying capacity. Upon
full payment within the approved payment term, the corresponding penalty shall be
condoned.
Answer
*Past due shall mean that the loan is delinquent for a period of at least six (6) months as of
the first day of the condonation period.

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 3. Are the Stock Investment Loan Program (SILP) and Privation
Fund Loan Program (PFLP) included in the STMLPCP?

No. SILP and PFLP are not covered in the STMLPCP. SSS currently offers an Option to Sell
Program for the said programs.
Answer

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 4. What are the requirements needed in availing the STMLPCP?

✓ Member must be registered to My.SSS online facility for online filing of the application.
✓ Member must have a qualified short-term member loan that is past due for a period of at
least six (6) months as of the first day of the STMLPCP period.
Answer
✓ Member must have an updated contact information i.e. mailing/home address and email
address.

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 5. Will the member be eligible for the STMLPCP if his/her loan account
will only become past due after the November 15, 2021 start date of
the STMLPCP implementation?

No. Member’s loan must be delinquent for a period of at least six (6) months as of the first
day of the condonation period (November 15, 2021). Succeeding past due loans to
subsequent months will no longer be eligible to the program.
Answer
Example: Salary loan dated 01/2020
Status of Account as Simulated Filing Date STMLPCP Eligibility
of a certain period
Current as of Nov 15, November 15, 2021 NOT QUALIFIED.
2021
With 6 Months Past Due February 14, 2021 NOT QUALIFIED.
by January 2021
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 6. How can a member apply to the Short-Term Member Loan Penalty
Condonation Program (STMLPCP)?

Member-borrowers must apply to STMLPCP thru their My.SSS account thru the SSS Website.
Only online application shall be allowed except for the following Total Permanent Disability,
Death and Retirement (DDR) applicants who can only submit their DDR Claim Application
over-the-counter (OTC) at the SSS Branches:
• Self-employed
Answer • With dependents
• Mine workers
• Racehorse jockeys
• Representative payee

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 7. What if member don’t have an online account; can they apply to
the nearest SSS Branch instead?

In compliance to Ease of Doing Business and Efficient Government Service Delivery Act of
2018, the program is made available online for easy access anytime and anywhere. However,
members may visit our SSS branches to avail the program through our e-Center Facility where
Answer our branch personnel will assist you in creating your My.SSS account and in applying to the
STMLPCP.

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 8. Can a member choose a shorter or longer installment term for the
Restructured Loan 1?

No. The allowed installment term for RL1 shall be six (6) months only. However, paying a
higher amount than the scheduled amortization shall be allowed to accelerate the full
Answer settlement of RL1.

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 9. How can DDR applicant who have past due loans avail of the
STMLPCP?

DDR applicants who are eligible to STMLPCP and who will file their DDR Claim Application
online or OTC at the SSS Branches within the STMLPCP availment period shall automatically
Answer be qualified to STMLPCP. No need to submit a separate STMLPCP application.

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 10. Are DDR applications filed before the STMLPCP availment period and with
qualified past due loans can still file for the STMLPCP?

Member-borrowers with pending DDR application encoded in the system submitted prior
November 15, 2021 shall no longer be eligible to the program. Only those filed within
Answer availment period shall automatically be qualified to STMLPCP.

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 11. What payment term shall be applicable for DDR applicants?

DDR applicants who are eligible to STMLPCP shall be allowed to avail of the one-time
payment term through deduction from the proceeds of the final benefit claim.
Answer

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 12. What payment term shall be available if member-borrower is already 65
years old or will turn 65 years old within the six months installment period but
will not file a Retirement or Permanent Total Disability Benefit Application within
the STMLPCP availment period?

Member-borrowers who are already 65 years old or will turn 65 years old within the six
months installment term but will not file Retirement or Permanent Total Disability Claim
Answer Application may avail of the One-time Payment Term only.

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 13. How can a member-borrower pay or settle the approved
STMLPCP?

Once the application is approved, a Payment Reference Number (PRN) under the Real Time
Processing of Loan (RTPL) shall be automatically issued by the system. This PRN must be used
Answer to pay the approved Consolidated and Restructured Loan.

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 14. Where can a member pay their STMLPCP one-time payment or
loan amortization?

Payment can be made thru the following using the issued PRN:
▪ SSS Branches with Tellering Section
▪ SSS Collecting Partners (Bank or Non-Bank)

Remember:
✓ Amount to be paid for the one-time payment or the 50% downpayment must be equal to the
Answer issued PRN amount.
✓ Payment of RL1 installment may be accelerated (i.e. payment of amount more than the monthly
amortization). Member must log in the My.SSS RTPL PRN Loans facility to modify the amount to
be paid.
✓ Make sure to SAVE every modification made in the details of PRN via My.SSS facility to update the
changes.
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 15. What should a member bring to pay or settle their approved
STMLPCP?

Payor may present any of the following:

▪ Printed PRN Loans Billing (with barcode) downloaded from My.SSS or obtained from SSS
Branch
Answer ▪ SMS on PRN Loans received from SSS
▪ PRN Loans Billing (with barcode) from member’s Android or iOS device or
▪ Short-term Loan Payment Form available from the SSS branch. Write/Indicate in the said
form the PRN.

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 16. Can a member pay in partial for a one-time payment just like in
previous Loan Restructuring Program (LRP)?

The full amount of the Consolidated Loan under the One-Time Payment or 50% down payment must be paid
in a single payment transaction within thirty (30) calendar days from receipt of the notice of the approval of
the Penalty Condonation Application. No staggered/partial payment shall be allowed even if the required
payment is completed within the 30-day period.
The Penalty Condonation Application shall be deemed cancelled and shall not entitle the member-borrower to
Answer condonation of penalty if partial payment is made for the Consolidated Loan (either payment term).
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.

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 17. Can a member just pay or settle their delinquent loans directly to
SSS branches or SSS accredited Collection Partners even without
filing a STMLPCP application online?

No. Member must have an approved STMLPCP online application before making a payment to have
their penalties waived under the said program. They must also use the corresponding STMLPCP PRN in
Answer paying the Consolidated Loan or Restructured Loan amount due.

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 18. What will happen if member fail to pay the Consolidated Loan on or
before the 30-calendar day period?

If the consolidated loan (one-time payment or 50% downpayment) is not paid within the 30-calendar
day period, the approved STMLPCP shall be automatically cancelled.
Answer

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 19. Can a member re-apply for another STMLPCP if they failed to pay
the consolidated loan within the 30-day calendar period?

Yes, 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 on February 14, 2022.
Answer

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 20. What will happen if member fail to pay the RL 1 on or before the
last due date of the 6-month amortization?

The balance of the RL1 should be zero at the end of the term. Any unpaid principal of RL1 and the
proportionate balance of the condonable penalty shall become part of a new principal under
Restructured Loan 2 (RL2) with higher interest rate of 10 percent per annum until fully paid. The full
Answer
amount under RL2, which includes all accrued interests shall be immediately due and demandable.

46
 21. Can a member pay ahead of the due date and more than the
scheduled amount to settle their RL1 installment term?

Yes, member must first edit the "Amount to be Paid" portion of PRN under the PRN -Loans facility of
their My.SSS account prior payment to update the amount they wish pay.

Answer
Reminder: Make sure to SAVE every modification made in the details of PRN via My.SSS facility to update
the changes.

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 22. If STMLPCP has been paid, when the member can apply for a new
short-term member loan?

Member may be allowed to file a short-term member loan from the date of full payment of the
approved STMLPCP, subject to eligibility requirements of the short-term member loan.
Answer

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End of Presentation

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