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 s 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 therefromB, 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 3V. 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 Page 3of3