FINANCE-SSS PENSION: MANILA- SSS to stop pension release to non-PESONet accounts starting May

March 25, 2022March 25, 2022 Contributor 0 Comment FINANCE-SSS PENSION: MANILA- SSS to stop pension release to non-PESONet accounts starting May

The SSS main office in Quezon City. (File photo from the Philippine Daily Inquirer)

MANILA, Philippines—After giving pensioners a longer time to change their bank accounts to PESONet-participating banks, the Social Security System (SSS) will suspend the May pension disbursements of those still using non-PESONet accounts.

In a March 23 circular, SSS president and chief executive Michael Regino said the policy-making Social Security Commission (SSC) last March 9 issued a resolution covering pensioners who still received their pensions through non-PESONet banks and checks.

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The SSS had given more time to pensioners to change their pension disbursement accounts, moving the deadline to March 31, 2022, from the original cut-off date of October 31, 2020, or a total of one year and five months of extension.

The SSS had extended the deadline several times in consideration of prolonged quarantine restrictions, as well as some banks’ request to continue serving as disbursement channels while applying to be part of PESONet.

PESONet refers to the Philippine Electronic Fund Transfer System and Operations Network, which connects banks under unified clearing and settlement rules to facilitate fund transfers from one payer account to one or more payee accounts maintained in different financial institutions supervised by the Bangko Sentral ng Pilipinas (BSP).

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In its March 9 resolution, the SSC decided to suspend the pension of members who do not or cannot change their disbursement accounts by March 31. The suspension starts on April 1 and will apply to the pension scheduled for release in May.

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“Existing procedures, 15-day float arrangements and crediting/withdrawal schedule for pension disbursements through non-PESONet participating banks under their memorandum of agreement with the SSS shall be stopped. For those receiving their pensions through checks, existing procedures and schedule shall also be stopped,” Regino said.

Regino said suspended pensions can only be resumed after pensioners enroll in PESONet banks or check-less disbursement channels.

But Regino said pensioners still using non-PESONet accounts, who were living overseas, confined in correctional or penitentiary institutions, and those whose pensions were being handled through the special pension and voucher systems, will be exempted from the new disbursement policy requiring PESONet bank accounts.