SSS Davao processes loans of members affected by flood

The Social Security System (SSS), which announced the processing of loans for victims of Typhoon Ondoy, has included coverage of members who were also affected by the flood on September 26, 27 and 28 in the areas of South Cotabato, Cotabato City and part of Sultan Kudarat.
SSS Davao branch head Jove L. Colasito during the Davao Business Forum at SM’s MediSpa, said these areas were included in the SSS Circular that will fast track the processing of loans of members affected by the recent calamity.
He said they treat this as a renewal loan even as he said that they process the loan even if the member has not fully paid his/her existing loan.  Normally, the member can avail of a loan renewal provided that he or she has completed payment of their existing loans.  In this case, he said, they will just deduct the balance from the proceeds.
The Davao branch covers the Davao Region, South Cotabato, part of the Autonomous Region for Muslim Mindanao, Cotabato City and Sultan Kudarat.  Extension offices are located in the cities of Tacurong, Koronadal, General Santos, Kidapawan, Digos, Tagum, Mati and in Toril district, Davao City. Soon to be established are offices in Panabo and Nabunturan, Colasito said.
Meanwhile, Colasito said Davao City is still their biggest area of coverage with about 600,000 as of August 2009.
As far as revenue generated, he said they noted a 2.6 percent increase in their collection as of August this year, P127 million higher than the August 2008 collection of only over P125 million.
However, he said they are working hard to attain their target set by the SSS of a monthly collection of P135 million.
He added thst they see potential growth with the “Good Account Management” scheme which many delinquent companies have availed of.
He said there are about 2,000 delinquent companies in Davao City and many availed of the scheme.
SSS, however, has classified companies into regular paying employers (RPE), intermittent, and non-paying employers. But in Davao Region, majority of the companies operating here belong to the RPE, he said.
He added that as of August 2009 they were able to collect P9 million from these delinquent companies. Total collections due to SSS from these companies totalled to P28 million covering only premium and excluding penalties.
As to the actuarial life of the SSS, Colasito said their funds are good up to 2036 and this is good enough to sustain the services and benefits that they extend to their members.