MANILA, Philippines - The Social Security System clarifies it is not mandated to set its interest rates for salary loans, based on the interest rates that the Bangko Sentral ng Pilipinas set for its Treasury bills.
SSS assistant vice president Maria Luz Generoso said the pension fund is not governed by the policies of the BSP.
She made the clarification after the Commission on Audit cited BSP rates in concluding the SSS over-collected interest on salary loans in 2011.
"We are not supervised by the BSP nor the SEC nor the Insurance Commission... Our feel is that we are also for the members, so if the BSP-prescribed interest calculation is better it will benefit many of our members. And also per our review it is the most logical thing to do, then we also review and present to our commission a certain enhancement for our program," she said on Mornings@ANC.
The SSS will soon launch a massive campaign meant to inform its members that it will issue a revised loan application form.
This new form will contain the breakdown of all the charegs that members will pay and the period when the deductions will be made.
"We will do a massive info campaign. We are enhancing our computerized system, hopefully, we have to come up with revised application form wherein everything will be there. The terms and conditions are disclosed to the member borrowers. So they know there's a first year's deduction of interest," the SSS official explained.