September 28, 2011, 4:28am
MANILA, Philippines — The Social Security System (SSS) called on pensioners affected by the closure of LBC Development Bank to open new accounts in another bank to avoid delay in their monthly pensions.
SSS President and CEO Emilio de Quiros, Jr. said October pensions of those with accounts at LBC Development Bank will be paid as pension checks sent to their home addresses until they have new accounts with another bank.
“SSS has started processing about P1.02 million worth of checks for the October pensions of 381 pensioners under the LBC Development Bank. We will mail the pensions checks to their home address before the end of Semptember,’ he said.
The Bangko Sentral ng Pilipinas has ordered the closure of LBC Development Bank for alleged ‘violations of banking laws’ and ‘unsafe banking practices,’ including allegations of transferring billion of pesos to affiliate companies, according to news reports.
About 99 percent of 1.6 million pensioners receive pensions through passbook or ATM savings accounts, while about 18,000 get pension checks through the mail. The Philippine National Bank accounts for the largest share of pensioners’ bank with over 550,000.
The SSS releases pension funds to its accredited banks two weeks before the applicable month. Pensions are credited monthly to pensioners bank accounts depending on members date of contingency
“As soon as the affected pensioners open a new bank account, they must go to the SSS to inform us so we can encode the changes at once. We urge them to do it before the SSS starts processing of November pensions on October 5, “ he said.
Pensioners must submit photocopies of their newly-opened passbook or ATM account and two valid identification cards together with an accomplished ‘ Request for Change of Bank’ or DDR2 form at the SSS branch nearest them, de Quiros said.
Those based overseas can apply for Chinatrust Visa Cash Card. They can mail the accomplished Chinatrust enrollment form and DDR2 form together with photocopies of their passport or any two valid IDs – at least one with photo – to the Pensions Processing Center of the SSS main office along East Avenue in Diliman, Quezon City.
REACTION:
Its good to hear that LBC bank started to take action upon their closure by sending pension checks, People who open an account to the said bank will benefit for this news. but we all know, that this kind of process will take days or months to be completed. The disadvantage for this is, the people deposit money to the LBC bank thru cash, and yet they will receive a pension check? This is very disappointing, because now a days people need money in order to survive, because the basic needs that we use everyday, the price its self is increasing. LBC bank also recommend the people who open an account to them to open an another account to other bank, but LBC bank did not think that to open a account to other bank, will need a starting deposit or a minimum balance to open an account. How can they open another account to other bank if the money they need is still on LBC bank.
For me, I will give credit to the LBC bank for taking action giving another option to the people who open an account to them. This is still a good news. It is also a lesson to us, We should first know the quality, the services that the bank is capable. So that we can ensure the safety of our investments, money and time.
