Accreditation of Cooperatives
as Collecting Agents
A presentation by
Ms. Nora M. Mercado
Department Head
Cooperative and Informal Sector
Account Management Group
Outline
I. Introduction
II. SSS Circular 2011-001
• Objectives
• Coverage
• Service Fee and Billing
III. Procedural Highlights
IV. Profile of the Target Market
I. Introduction
Sept 2005
Feb 2010
Jul 2010
Dec 2010
Feb 2011
ExManCom
approved the
revised
proposal on the
accreditation of
coops and
people
organization
Consultation
meeting with
the head of
coops, attended
by the EVP &
Chief Actuary
Templo,
SVP See and VP
Argabioso and
branch
operations
sector officials
Briefing on
accreditation of
coops as SSS
collecting
agents was held
at Tuguegarao
City
SSC approved
the collection
agnecy
agreement (for
coops) under
Res. No. 972s.2010 on
08 Dec 2010
Issuance of
Circular 2011001 signed by
PCEO De
Quiros, Jr
II. SSS Circular 2011-001
The Social Security Commission in its
Resolution No. 972-s.2010 dated
08 December 2010 approved the
Collection Agency Agreement
(Cooperatives), as well as the
Guidelines on Accreditation of
Cooperatives as Collecting Agents of
the Social Security System.
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II. SSS Circular 2011-001
• Objectives
1. To provide convenient facility to members of
Cooperatives, who are at the same time selfemployed or voluntary members of the SSS, to
pay their contributions and other obligations to
SSS
2. To ensure faster crediting of payment made by
the payor; and
3. To give incentives to cooperatives in
encouraging their members to pay their
contributions and other obligations to SSS
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II. SSS Circular 2011-001
• Coverage
1) Who may be accredited?
A.The cooperative must be a Primary
Cooperative
B. Must be duly registered with the CDA.
C.Must be in existence for at least three (3)
years.
D.Must be registered with the SSS as an
employer and regularly paying as such.
E. Its operations must pass the financial
evaluation criteria.
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II. SSS Circular 2011-001
• Coverage
2) How to apply for accreditation? Submit an accomplished
Application for Accreditation with the necessary documentary
requirements to SSS Branch Office.
3) Authority to collect. Limited to its members who are Selfemployed or Voluntary Members of the SSS and who have
agreed in writing to avail of its services.
4) SSS payments to be collected.
(1) Social Security Contributions;
(2) Educational, Salary, Calamity, and Stock Investment loan
amortization;
(3) Housing loan amortization; and
(4) Miscellaneous payments.
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II. SSS Circular 2011-001
• Service Fee and Billing
 Service Fee of Six Pesos (P 6.00) for every
transaction within fifteen (15) days
 Not due on Miscellaneous Payments LESS
than the Minimum Monthly Contribution
 No demand shall be valid except upon
submission of the required Collection List
 SSS to pay Penalty equivalent to 3% per
annum for any delay in the payment of the
Service Fee.
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III. Procedural Highlights
A. Submission and Approval of Application
Cooperative
The Application for Accreditation
as Collecting Agent (AACA)
Form shall be made available in
all SSS branches, in the intranet
and the SSS website.
The applicant shall fillout and submit two (2)
copies of the AACA
Form to the nearest
SSS Branch together
with the documentary
requirements
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III. Procedural Highlights
B. SSS Payments Acceptance
The collecting agent shall:
1. Start collection only upon posting of the
Performance Security.
Collecting Agent
2. Collect SSS payment only from its members.
3. Acknowledge receipt of SSS payments by issuing the Official
Receipt (OR) that the Collecting Agent uses in its regular
business transactions.
All payments received (amount and date of payment) should be in accordance with
Circular 33-P on the Schedule of Contributions effective January 1, 2007 and Office Order
2011-101 on the Revised Payment Deadlines for Contributions and Member Loans,
unless amended.
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III. Procedural Highlights
C. Remittance, Submission of Collection List and
Collection of Service Fee
Remittance of SSS Payments
The collecting agent shall:
1. Remit all SSS payments on such dates/schedules as the
SSC may specify to any SSS Depository Bank or SSS
Branch Teller.
Collecting Agent
2. Pay penalty for late remittance equivalent to One Tenth of One
Percent (1/10 of 1%) of the total amount due
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III. Procedural Highlights
C. Remittance, Submission of Collection List and
Collection of Service Fee
Preparation and Submission of Collection List
The collecting agent shall:
1. Prepare a Monthly Collection List for Collecting Agents
(MCL-CA), which contains the following data:
Collecting Agent
•
•
•
•
CAAN
Name
Address
Summary of Remittances
(amount paid,
SBR/Transaction Date and
Number)
Member’s Details such as:
• SS number & Name
• Amount Paid & Applicable
Month/Period
• OR number & Date of payment,
with corresponding totals where
applicable.
2. Submit the MCL-CA to the nearest SSS Branch on or before the tenth
day of the month following the Collection month.
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III. Procedural Highlights
C. Remittance, Submission of Collection List and
Collection of Service Fee
Collection of Service Fee
The collecting agent shall:
1. Submit the Billing to the nearest SSS Branch.
Collecting Agent
2. Not collect Service Fees for the following:
• SSS payments without the assistance of the Cooperative
• SSS payment receipts not bearing the name of the Cooperative even
• SSS payments made but member is not reported thru CAML or his
membership has been terminated by the Cooperative thru a
notification letter; and
• Miscellaneous payment in the amount less than the existing
minimum monthly SSS contribution.
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IV.
Profile of the Target
Markets
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Cooperatives in the Philippines
Total Membership of Cooperatives Registered
Under Art. 144 of RA 9520 by Region
As of December 2010
Region
I
II
CAR
III
NCR
IV
V
VI
VII
VII
IX
X
XI
XII
CARAGA
ARMM
TOTAL
Total Number of
Registered
Cooperatives
1,133
628
628
1,696
1,749
2,175
718
1,247
1,431
634
685
1,333
1,505
879
952
812
18,205
Total Membership
of Registered
Cooperatives
400,365
368,818
247,487
616,267
1,305,364
568,293
239,330
416,080
585,996
276,554
297,587
389,183
1,098,545
186,897
153,982
45,349
7,196,097
Number of Cooperative
Federation Per Asset Size
Micro
152
55%
Small
52
19%
Medium
38
14%
Large
33
12%
16
Cooperatives in the Philippines
Distribution of Cooperative
Membership
V, 3%
NCR, 18%
IV, 8%
Average Member Per Coop
VI, 6%
800
III, 9%
VII, 8%
CAR, 3%
II, 5%
I, 6%
VII, 4%
600
IX, 4%
500
X, 5%
XI, 15%
700
Average No. of Members = 395
400
300
200
ARMM
CARAGA
XII
XI
X
IX
VII
VII
VI
V
IV
NCR
III
CAR
0
II
100
I
ARMM,
1%
CARAGA, XII, 3%
2%
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Top 20 Cooperatives in the Philippines
Rank
REGION
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
NCR
CO
NCR
Region 10
Region 07
NCR
CO
NCR
CO
Region 04
CO
NCR
CAR
NCR
CO
NCR
NCR
Region 07
Region 08
Region 07
NAME OF COOPERATIVE
PAFCPIC
Cooperative Rural Bank of Bulacan
ACDI Savings and Credit Coop
First Community Coop
Cebu CFI Community Coop
PLDT Employee's Credit Coop Inc.
PANELCO III
NOVADECI
FICOBANK
SIDC
Negros Occidental Electric Coop
PLDT Employees Multi-Purpose Coop
Baguio-Benguet Community Credit Coop
DSE (BSP) Credit Cooperative
Metro South Cooperative Bank
Amkor Tech. Phils. Employees Coop
National Confederation of Coop
Perpetual Help Community Coop
Metro Ormoc Community Coop
Dumaguete Cathedral Credit Coop
NO. OF
TOTAL ASSETS
MEMBERS
(In Millions)
75,598
5,105.63
Multi-Purpose
134
3,228.71
Coop Bank-Secondary
34,404
3,187.62
Credit
116,171
2,931.31
Multi-Purpose
39,528
1,996.76
Credit
11,038
1,501.36
Credit
117,389
1,219.10
Service
20,038
1,172.48
Multi-Purpose
227
1,130.69
Coop Bank-Secondary
13,213
1,091.52
Multi-Purpose
119,426
1,026.68
Service
8,383
1,004.56
Multi-Purpose
15,500
952.10
Credit
3,061
939.97
Credit
859
896.22
Coop Bank-Secondary
8,078
856.23
Credit
340
844.28
Federation-Tertiary
16,000
824.72
Credit
35,884
821.02
Credit
4,900
792.26
Credit
TYPE
Where Are We Today
SSS Registered Associations and Cooperatives
as of November 2011
ER
Business Code
Prefix 0611 0641 0652 0653 0827 0828
1
2
3
4
5
6
7
8
9
10
662 63 17
488 17 342
1,576 508 235
478 66 49
213 14 14
589 44 20
480 33 27
500 69 12
777 81 16
156
9
2
TOTAL 5,919 904 734
260
252
888
1,323
179
314
578
297
230
83
0712
0713
TOTAL
60 19
35 62
530 199
88 79
23 90
81 92
128 113
49 114
44 61
18 22
1,167
455
418
102
111
212
244
180
316
161
8,108 10,356
4,540 6,191
6,250 10,604
3,789 5,974
2,186 2,830
3,000 4,352
3,779 5,382
5,972 7,193
9,055 10,580
2,041 2,492
4,404 1,056 851
3,366
48,720 65,954
Where:
0611- cooperatives
0641 - associations (property
owners)
0652 - associations (building
and loan associations)
0653 - credit associations
0827 - trade associations
0828 - labor associations
0712 – Omnibus Operator
0713 – Taxi/PUJ Transport
Source: ADM-1
Other Registered Associations:
Federations of various industries (both formal and informal) - 80
Associations (excluded from above stats) also of formal and informal groups - 128
Association of direct selling industry - 1
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End of Presentation
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