The Philippines’ Social Security System (SSS), the country’s largest pension fund, says housing loan repayments by members rose 27.56% year-on-year in the first half of 2019 as it became more aggressive on collections.
The state-backed pension fund’s housing loan programme collected 849.04 million pesos (US$16.37 million) in the six months through June compared with 665.60 million pesos in the first half of 2018.
SSS President and Chief Executive Officer Aurora C. Ignacio attributes the rise mainly to "aggressive collection and foreclosure efforts of the pension fund together with the development of a new billing system".
“We are pleased with the increase in collection from housing loans. With this additional fund, we can help more members who may be having difficulties in acquiring properties or improving their houses," Ms. Ignacio says in a statement on September 9.
Active SSS members can obtain housing loans of up to 2 million pesos from the fund, with a repayment period of between five and 30 years.
Active members are defined as those who have contributed for at least 36 months, including 24 continuous months in the period prior to applying for a loan.
SSS members are private sector workers and Filipinos working abroad. Contributions to the fund are shared between employers and employees.
The SSS had 542.27 billion pesos of total assets as at June 30, up 6.02% from 511.47 billion pesos a year earlier.