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Accreditation of Cooperatives as Collecting Agents Account Management Group A presentation by Ms. Nora M. Mercado Department Head Cooperative and Informal.

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Presentation on theme: "Accreditation of Cooperatives as Collecting Agents Account Management Group A presentation by Ms. Nora M. Mercado Department Head Cooperative and Informal."— Presentation transcript:

1 Accreditation of Cooperatives as Collecting Agents Account Management Group A presentation by Ms. Nora M. Mercado Department Head Cooperative and Informal Sector

2 Outline I.Introduction II.SSS Circular 2011-001 Objectives Coverage Service Fee and Billing III.Procedural Highlights IV.Profile of the Target Market

3 I. Introduction Sept 2005Feb 2010Jul 2010Dec 2010Feb 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

4 II. SSS Circular 2011-001 4 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.

5 5 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 Objectives II. SSS Circular 2011-001

6 6 Coverage 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

7 7 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 Coverage

8 8 II. SSS Circular 2011-001 Service Fee and Billing 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.

9 9 The applicant shall fill- out and submit two (2) copies of the AACA Form to the nearest SSS Branch together with the documentary requirementsdocumentary 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

10 10 B. SSS Payments Acceptance The collecting agent shall: 1.Start collection only upon posting of the Performance Security.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

11 11 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.SSS Depository Bank 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

12 12 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

13 13 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 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. Collection of Service Fee III. Procedural Highlights

14 14 C. Remittance, Submission of Collection List and Collection of Service Fee The SSS Branch shall: 1.Validate the Cooperative’s compliance to the requirements; 2.Confirm the correctness of the Billing; 3.Compute and demand payment of penalty for late remittances; 3.Issue Letter of Reminder to the Cooperative for late submission of MCL-CA. 4.Forward the Billing for processing to the Administrative/Accounting Section of the Hub Branch or the GAD for NCR Branches. Collection of Service Fee SSS Branch III. Procedural Highlights

15 15 IV. Profile of the Target Markets

16 Total Membership of Cooperatives Registered Under Art. 144 of RA 9520 by Region As of December 2010 Region Total Number of Registered Cooperatives Total Membership of Registered Cooperatives I1,133400,365 II628368,818 CAR628247,487 III1,696616,267 NCR1,7491,305,364 IV2,175568,293 V718239,330 VI1,247416,080 VII1,431585,996 VII634276,554 IX685297,587 X1,333389,183 XI1,5051,098,545 XII879186,897 CARAGA952153,982 ARMM81245,349 TOTAL18,2057,196,097 16 Number of Cooperative Federation Per Asset Size Cooperatives in the Philippines

17 Average Member Per Coop Distribution of Cooperative Membership 17 Average No. of Members = 395 Cooperatives in the Philippines

18 RankREGIONNAME OF COOPERATIVETYPE NO. OF MEMBERS TOTAL ASSETS (In Millions) 1NCRPAFCPIC Multi-Purpose 75,598 5,105.63 2COCooperative Rural Bank of Bulacan Coop Bank-Secondary 134 3,228.71 3NCRACDI Savings and Credit Coop Credit 34,404 3,187.62 4Region 10First Community Coop Multi-Purpose 116,171 2,931.31 5Region 07Cebu CFI Community Coop Credit 39,528 1,996.76 6NCRPLDT Employee's Credit Coop Inc. Credit 11,038 1,501.36 7COPANELCO III Service 117,389 1,219.10 8NCRNOVADECI Multi-Purpose 20,038 1,172.48 9COFICOBANK Coop Bank-Secondary 227 1,130.69 10Region 04SIDC Multi-Purpose 13,213 1,091.52 11CONegros Occidental Electric Coop Service 119,426 1,026.68 12NCRPLDT Employees Multi-Purpose Coop Multi-Purpose 8,383 1,004.56 13CARBaguio-Benguet Community Credit Coop Credit 15,500 952.10 14NCRDSE (BSP) Credit Cooperative Credit 3,061 939.97 15COMetro South Cooperative Bank Coop Bank-Secondary 859 896.22 16NCRAmkor Tech. Phils. Employees Coop Credit 8,078 856.23 17NCRNational Confederation of Coop Federation-Tertiary 340 844.28 18Region 07Perpetual Help Community Coop Credit 16,000 824.72 19Region 08Metro Ormoc Community Coop Credit 35,884 821.02 20Region 07Dumaguete Cathedral Credit Coop Credit 4,900 792.26 Top 20 Cooperatives in the Philippines

19 Source: ADM-1 SSS Registered Associations and Cooperatives as of November 2011 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 Where: 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 Where Are We Today 19 ER Prefix Business Code TOTAL 06110641065206530827082807120713 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 14 179 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

20 End of Presentation 20

21 21 a.Articles of Cooperation, together with its By-Laws; b.Certificate of Registration with CDA; c.List of names and addresses of the present members of its Board of Directors, including their SS numbers; d.Board Resolution, duly certified by the Board Secretary, approving the Collection Agency Agreement (CAA) and particularly naming the officer as the authorized signatory thereof; e.The CAA signed by the officer duly authorized by the Board of Directors as certified by the Board Secretary; f.Audited Financial Statements for the last three (3) years; Required Documents: III. Procedural Highlights

22 22 g.List of names and addresses of accountable officers to be bonded and the estimated amount of coverage of the bond and their SS numbers; h.Proposed nature of the bond to secure its performance under the CAA, and the estimated amount of coverage of the bond; i.List of creditors and their complete addresses and the corresponding nature, amount and terms of obligations. If none, a Certification duly signed by its President attesting to the non-existence of creditors; j.SSS Clearance issued by the Cluster Legal Unit Head not earlier than three (3) months prior to the date of filing of the application for accreditation; Required Documents: Continuation…

23 III. Procedural Highlights 23 k.Duly accomplished Collecting Agent’s Member List (CAML) showing their members’ personal information; l.The latest CAPR or Cooperative Annual Performance Report duly received by CDA (including the latest COOP-PESOS rating sheet); and m.A favorable endorsement issued not earlier than six (6) months prior to the time of filing the application, from the proper government agency. Required Documents: Continuation…

24 III. Procedural Highlights 24 n.A favorable endorsement issued not earlier than six (6) months prior to the time of filing the application, from the proper government agency as follows: Government AgencyActivity/Profession Civil Aeronautics BoardAir transport Bangko Sentral ng Pilipinas Banking, pawnshops and other financial intermediaries with quasi-banking functions Games and Amusement BoardProfessional boxing Philippine Charity Sweepstakes OfficeOperation of games of chance Commission of Higher EducationCollege or tertiary educational institution Department of EducationElementary to high school educational institution Technical and Skills Development Authority Technical or vocational Educational institution Department of EnergyElectric power plants Department of HealthHospitals Insurance CommissionInsurance Required Documents: Continuation…

25 III. Procedural Highlights 25 Government AgencyActivity/Profession Land Transportation Franchising & Regulatory Board Land transport Maritime Industry AuthorityWater transport construction and vessels building National Telecommunications Commission Operation of radio, television and telephone Philippine Overseas Employment Administration Recruitment for overseas worker Philippine National PoliceSecurity agency Philippine National Police Manufacture, repair, storage and/or distribution of products and/or ingredients of firearms, gun powder and all those indicated in Executive Order No. 95.s-2002 Foreign Investment Negative List. Department of National DefenseManufacture, repair, storage and/or distribution of products i.e., guns, ammunition for warfare, military and all those indicated in Executive Order No. 95.s-2002 Foreign Investment Negative List. Required Documents: Continuation…

26 26 – Renewable annually for the entire period of the CAA or any extension thereof; – Callable upon demand; – Contain clauses and conditions answering for the liability of the Collecting Agent for any violation of the CAA; – Answer for failure on the part of the Collecting Agent to remit to SSS or to any of its Depository Banks all SSS payments and amortizations paid through and still remaining with the Collecting Agent despite the termination of the CAA; – Provide that the Bonding Company shall be liable to the SSS to the extent of the Performance Security posted, in case the Collecting Agent fails, refuses or defaults in the performance of any of its obligations under the CAA; and – Contain a condition that, except in the cash bond, for purposes of CALL notice by the SSS to the Collecting Agent is considered as notice to the Bonding Company Performance Security III. Procedural Highlights

27 27 The following are the existing SSS Depository banks: – Bank of the Philippine Islands (BPI) – Banco de Oro (BDO) Universal Bank – Development Bank of the Philippines (DBP) – Land Bank of the Philippines (LandBank) – Metropolitan Bank and Trust Company (Metrobank) – Philippine National Bank (PNB) – Union Bank – Veterans Bank III. Procedural Highlights

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