Accreditation of Cooperatives as Collecting

Agents

Account Management Group

A presentation by

Ms. Nora M. MercadoDepartment HeadCooperative and Informal Sector

Outline

I. IntroductionII. SSS Circular 2011-001

• Objectives• Coverage• Service Fee and Billing

III. Procedural HighlightsIV. 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. 972-s.2010 on 08 Dec 2010

Issuance of Circular 2011-001 signed by PCEO De Quiros, Jr

II. SSS Circular 2011-001

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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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1. To provide convenient facility to members of Cooperatives, who are at the same time self-employed 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

• Objectives

II. SSS Circular 2011-001

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• 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.

II. SSS Circular 2011-001

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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 Self-employed 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.

II. SSS Circular 2011-001

• Coverage

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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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The applicant shall fill-out and submit two (2) copies of the AACA Form to the nearest SSS Branch together with the documentary requirements

A. Submission and Approval of Application

The Application for Accreditation as Collecting Agent (AACA) Form shall be made available in all SSS branches, in the intranet and the SSS website.

III. Procedural Highlights

Cooperative

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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.

III. Procedural Highlights

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C. Remittance, Submission of Collection List and Collection of Service Fee

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

Remittance of SSS Payments

III. Procedural Highlights

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C. Remittance, Submission of Collection List and Collection of Service Fee

The collecting agent shall: 1. Prepare a Monthly Collection List for Collecting Agents

(MCL-CA), which contains the following data:

Collecting Agent

2. Submit the MCL-CA to the nearest SSS Branch on or before the tenth day of the month following the Collection month.

Preparation and Submission of Collection List

• 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.

III. Procedural Highlights

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C. Remittance, Submission of Collection List and Collection of Service Fee

The collecting agent shall: 1. Submit the Billing to the nearest SSS Branch.

Collecting Agent2. 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.

Collection of Service Fee

III. Procedural Highlights

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IV.

Profile of the Target Markets

Large3312%

Medium38

14%

Small5219%

Micro 15255%

Total Membership of Cooperatives Registered Under Art. 144 of RA 9520 by RegionAs of December 2010

RegionTotal Number of

Registered Cooperatives

Total Membership of Registered Cooperatives

I 1,133 400,365II 628 368,818

CAR 628 247,487III 1,696 616,267

NCR 1,749 1,305,364IV 2,175 568,293V 718 239,330VI 1,247 416,080VII 1,431 585,996VII 634 276,554IX 685 297,587X 1,333 389,183XI 1,505 1,098,545XII 879 186,897

CARAGA 952 153,982ARMM 812 45,349TOTAL 18,205 7,196,097

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Number of Cooperative Federation Per Asset

Size

Cooperatives in the Philippines

I, 6%

II, 5%

CAR, 3%

III, 9%

NCR, 18%

IV, 8%

V, 3%

VI, 6%

VII, 8%

VII, 4%

IX, 4%

X, 5%

XI, 15%

XII, 3%

CARAGA, 2%

ARMM, 1%

Average Member Per Coop

ICAR

NCR V VII IX XI

CARAGA0

100

200

300

400

500

600

700

800

Distribution of Cooperative Membership

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Average No. of Members = 395

Cooperatives in the Philippines

Rank REGION NAME OF COOPERATIVE TYPE NO. OF MEMBERS

TOTAL ASSETS (In Millions)

1 NCR PAFCPIC Multi-Purpose 75,598 5,105.63 2 CO Cooperative Rural Bank of Bulacan Coop Bank-Secondary 134 3,228.713 NCR ACDI Savings and Credit Coop Credit 34,404 3,187.624 Region 10 First Community Coop Multi-Purpose 116,171 2,931.315 Region 07 Cebu CFI Community Coop Credit 39,528 1,996.766 NCR PLDT Employee's Credit Coop Inc. Credit 11,038 1,501.367 CO PANELCO III Service 117,389 1,219.108 NCR NOVADECI Multi-Purpose 20,038 1,172.489 CO FICOBANK Coop Bank-Secondary 227 1,130.69

10 Region 04 SIDC Multi-Purpose 13,213 1,091.5211 CO Negros Occidental Electric Coop Service 119,426 1,026.6812 NCR PLDT Employees Multi-Purpose Coop Multi-Purpose 8,383 1,004.5613 CAR Baguio-Benguet Community Credit Coop Credit 15,500 952.1014 NCR DSE (BSP) Credit Cooperative Credit 3,061 939.9715 CO Metro South Cooperative Bank Coop Bank-Secondary 859 896.2216 NCR Amkor Tech. Phils. Employees Coop Credit 8,078 856.2317 NCR National Confederation of Coop Federation-Tertiary 340 844.2818 Region 07 Perpetual Help Community Coop Credit 16,000 824.7219 Region 08 Metro Ormoc Community Coop Credit 35,884 821.0220 Region 07 Dumaguete Cathedral Credit Coop Credit 4,900 792.26

Top 20 Cooperatives in the Philippines

Source: ADM-1

SSS Registered Associations and Cooperativesas of November 2011

0611- cooperatives0641 - associations (property

owners)0652 - associations (building

and loan associations)0653 - credit associations0827 - trade associations0828 - labor associations0712 – Omnibus Operator0713 – Taxi/PUJ Transport

Where:

Other Registered Associations:Federations of various industries (both formal and informal) - 80Associations (excluded from above stats) also of formal and informal groups - 128Association of direct selling industry - 1

Where Are We Today

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ER Prefix

Business Code TOTAL

0611 0641 0652 0653 0827 0828 0712 0713

1 662 63 17 260 60 19 1,167 8,108 10,356 2 488 17 342 252 35 62 455 4,540 6,191 3 1,576 508 235 888 530 199 418 6,250 10,604 4 478 66 49 1,323 88 79 102 3,789 5,974 5 213 14 14 179 23 90 111 2,186 2,830 6 589 44 20 314 81 92 212 3,000 4,352 7 480 33 27 578 128 113 244 3,779 5,382 8 500 69 12 297 49 114 180 5,972 7,193 9 777 81 16 230 44 61 316 9,055 10,580

10 156 9 2 83 18 22 161 2,041 2,492

TOTAL 5,919 904 734 4,404 1,056 851 3,366 48,720 65,954

End of Presentation

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