MANILA, Philippines - The Social Security System denied the Commission on Audit's claim that it has been overcharging its members by P789 million.
SSS Assistant Vice President Maria Luz Generoso says the interest rate they charge members with salary loans is in line with the rules of the Social Security Commission.
She added this has been the practice since 2001.
A COA report said SSS overcharged interest for salary loans in 2011. It noted that the 10% interest must be based on the diminishing monthly loan balance, not on the principal loan amount.
Based on COA's findings, the SSS needs to refund P789 million to the 700,000 members who availed of the salary loan in 2011.
However, Generoso noted there may be a difference between their computation and that of the Bangko Sentral ng Pilipinas.
She says their computation may be revised in December but there will be no refunds for now.
"There is no overcharge to the members because our implementation is based on what has been approved by our commission. It is also one way of computing interest, so that's how SSS computed it. Other institutions compute it differently," she told ANC.
"When COA compared what they adapted, based on BSP's computation and compared it to ours there is really a difference in the interest portion." - ANC