Republic of the Philippines
SOCIAL SECURITY SYSTEM
Diiman, Quezon City
Tel, ine (632) 920-6401 + (632) 920-6446
E-mall: member relatons@Dsss.gavph + Web ste, hitpyiwww.sss.govgh
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CIRCULAR NO. _2017- 009
SUBJECT AMENDMENT TO CIRCULAR NO. 2011-002 DATED 16 FEBRUARY
2011 (REVISED GUIDELINES IN THE INSTALLMENT PAYMENT
SCHEME FOR EMPLOYERS) AND CREATION OF THE EMPLOYER
DELINQUENCY SETTLEMENT REVIEW COMMITTEE
To address the number of pending requests of financially distressed or impaired
employers for relief on the settlement of their due but unremitted contributions and
penalties, the Social Security Commission (SSC) in its Resolution No. 587-s.2017
approved the following additional guidelines, to wit
|. Coverage. - All delinquent employers with delinquency of at least One Hundred
Thousand Pesos (P100,000.00) exclusive of penalty, with or without pending
case before the Prosecutor's Office (Department of Justice), Courts and SSC
and with or without a subsisting approved settlement scheme, currently
experiencing financial difficulties in complying with its statutory obligation to
pay/remit due contributions, including penalties imposed thereon for late
payments/emittances, due to losses, mismanagement or those adversely
affected by calamities such as natural or human-induced disasters
itional Settlement Option. - A delinquent employer who pays in full its
principal obligations/unremitted contributions shall be entitled to a one-year
period from payment date of the principal to defer payment of its penalty
liabilities or to submit an installment payment scheme under Circular No. 2011
002 or as may be determined by the SSC.
All existing settlement schemes/guidelines currently enforced and implemented
in connection to, but not inconsistent with, these Guidelines shall continue to
be applied and availed of as a settlement option, with the procedures and
requirements thereon followed
Ill. Procedures. -
A. The employer shall first secure an updated and consolidated Statement of
Account (SOA) from the concerned Branch Office (BOYLarge Account
Department (LAD) of its due but unpaid/unremitted contributions
delinquencies, inclusive of the assessed penalties accruing therefromB, The employer shall manifest its intention to avail of this settlement option by
initially submitting a letter-request for settlement to the servicing Branch
Office of its outstanding delinquencies by offering to pay in full the amount
of the principal contribution delinquency per SOA. The actual full payment
made on the principal obligation due per SOA shall be without prejudice to
the difference in amount that may have in the meantime became due or
acorued thereafter
C. The payment in full of the principal amount due shall operate to stop further
penaity accruals and provide the employer a period of one year from
Payment date within which to pay its subsisting penalty delinquencies per
‘SOA, subject to the approved installment plan,
D. The payment of the total penalty delinquency due from the employer after the
period of one year from payment date may be in full or on a staggered/
instaliment basis in accordance with the provisions of Section 5 of Circular
No. 2011-002 on the schedule of monthly installment with authority to
recommend a longer period based on meritorious ground/s and the mode
and manner of payment through "post-dated checks” (PDCs) corresponding
to the months covered by the installment.
E. A legal interest'of six percent (6%) per annum shall be imposed on the
subsisting penalty delinquency upon payment
F. The’ foregoing settlement arrangement together with the other applicable
terms and conditions under the Application for Installment Proposal (on
Penalty) shall be processed by the Head, Accounts Management Section
(AMS) of the servicing BO/LAD and passed on for approval to the Head of
the BO/LAD, as the case may be, or the next higher official in their absence.
G. No other documents in support of the letter-request and the approved
application for installment shall be required of the employer save for a duly
notarized Promissory Note/Undertaking. The agent/representative of the
employer must be duly authorized with a Special Power of Attorney (SPA) to
bind the employer he/she represents and hold valid the agreement with SSS.
IV. Creation of the Employer Delinquency Settlement Review
Committee/Secretariat. - There shall be created an Employer Delinquency
Settlement Review Committee (EDSRC) from the SSS Management that
shall review all requests for reconsideration of denials made by the Heads of
the BO/LAD involving settiement offers/proposals from delinquent employers
under existing settlement schemes. After each review, the EDSRC shall
make a recommendation to the President and CEO (PCEO) of the SSS.
A qoarterly report on all actions taken on matters referred to the EDSRC
under this Guideline shall be submitted by the EDSRC, through the duly
designated Secretariat tasked to assist it, to the SSC for its information.
The approval or decision of the PCEO on all matters recommended to the
latter by the EDSRC shall be valid and binding
‘Amendment to Circular No. 2011-002 Dated 16 February 2011 (Revised Guidelines in the Installment Payment
‘Scheme for Employers) and Creation of the Employer Delinquency Setiement Review Commitiee
Page 2 of 3V. The EDSRC Composition. - The EDSRC shall be comsosed of the following:
Chairperson
Members
‘Senior Vice-President/Chief Legal Counsel
Legal and Enforcement Group
Senior Vice-Presidents
NCR, Luzon, Visayas and Mindanao Groups
and Account Management Group
Senior Vice-President
Lending and Asset Management Group
Vice-President/Officer-In-Charge
Operations Legal Services Divisions | & Il
Department Manager Ill
Commission Legal Department
VI. Exception to the Membership in the EDSRC. - The Senior Vice-President of
the NCR, Luzon, Visayas and Mindanao Groups or the Account Management
Group shall not participate in the deliberation of the EDSRC on matters
concerning a delinquent employer under his/her jurisdiction
Vil. Amendatory Clause. - Provisions of Circular No. 2011-002 dated 16 February
2011 and all other related/relevant circulars, orders, issuances or parts thereof,
which are contrary to the foregoing are deemed superseded or modified
accordingly.
Vill. Effectivity. - This Circular shall take effect immediately.
02 OCT 2017
Date
(Policies & Procedures Continutons & Laas Collection)
‘Amendment to Circular No. 2011-002 Dated 16 February 2011 (Revised Guidelines in the Installment Payment
‘Scheme for Employers) and Creation of the Employer Delinquency Setiement Review Committee
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