Overview

The Option to Sell Program allows member-borrowers with outstanding loans under the Stock Investment Loan Program (SILP) and Privatization Fund Loan Program (PFLP) to authorize the Social Security System (SSS) to sell their shares of stocks under its custody thru accredited brokers, subject to usual fees and charges. The proceeds from the sale shall then be used to pay off their SILP/PFLP loans.

This program covers all member-borrowers with outstanding loan balances under the SILP and PFLP.

Program Guidelines

  1. The member-borrower shall execute a Special Power of Attorney (SPA) authorizing SSS to sell his/her shares of stocks.

  2. The shares of stocks shall be sold by SSS at the prevailing market price based on the quotation of an accredited broker and subject to the usual charges such as broker’s commission, taxes and other fees.

  3. Net proceeds from the sale of the member-borrower’s shares of stocks shall be applied to his/her outstanding SILP/PFLP loan balance.
    The excess amount after application to the outstanding SILP/PFLP loan balance shall be applied to his/her other delinquent member loans and housing loans, if any.
    Any excess amount after the application to the other delinquent member loans shall be refunded to the member-borrower.

  4. For net proceeds from the sale of the member-borrower’s shares of stocks, which is less than the outstanding SILP/PFLP loan balance, the member-borrower shall be required to pay the remaining SILP/PFLP loan balance at any SSS Branch Office with tellering facility or SSS accredited collecting agent using a Payment Reference Number (PRN) or thru deduction from the final benefits (i.e., Retirement, Total Permanent Disability, Death).

    Said remaining balance shall continue to be charged with interest and penalties until fully paid.

Application Process

  1. The member-borrower shall accomplish and submit the SSS Option to Sell application form together with the following documents:

    • Notarized SPA;

    • Accomplished Broker Signature Cards;

    • Customer Account Information Form;

    • Statement of Account issued by SSS SILP Section; and

    • Photocopy of Unified Multi-purpose Identification/Social Security card or any two (2) valid ID cards (at least one of which bears the member’s photo and signature).

  2. The shares of stock will be sold by the SSS at the prevailing market price based on the quotation of an accredited broker.

  3. The following charges shall be deducted from the proceeds of the sale:

    Category Description Amount/Rate
    Broker’s Commission  Board Lot Transaction 1/4 of 1% – 1.5% of gross sale
    Odd Lot Transaction 1/4 of 1% – 1.5% or ₱20.00 – ₱150.00 of gross sale or whatever the broker may charge for this transaction
    Sales Tax – 1/2 of 1% of gross sale
    VAT 12% of Broker’s Commission –
    Transfer Charges Cancellation Fee ₱22.00
    Transfer Fee ₱110.00
    Service Fee ₱55.00
    Philippine Central Depository (PDC) Fee – 0.000917 of gross sale
    Securities Clearing Corporation of the Philippines (SCCP) Fee – 0.0001 of gross sale
    Philippine Stock Exchange (PSE) Fee – 0.00005 of gross sale
    Note: All charges are subject to change.
  4. The net proceeds from the sale shall be applied as payment to the outstanding balance (SILP/PFLP). Upon posting of payment and closing of SILP/PFLP account, the remaining amount from the proceeds of the sale shall be applied to the member’s other delinquent member loans (if any) or refunded to the member-borrower.
  5. If the net proceeds of the sale are not sufficient to cover the outstanding SILP/PFLP loan, the remaining loan balance may be paid by the member-borrower at any SSS Branch Office with tellering facility or SSS accredited collecting agent.  They must use a Payment Reference Number (PRN) and should coordinate with SSS to ensure their records are updated.

    Any remaining loan balance shall continue to be charged with interests and penalties until fully paid.