Public Hearing: Continuation of Surviving Spouse Benefits After Remarriage?

On January 23, 2004, the FSMSS Administrator Alexander R. Narruhn and the FSMSSA attorney Steve Finnen, attended a public hearing held by the FSM Congress to discuss Bill No. 13-59.
The bill, introduced by Senator Dohsis Halbert, if passed into law, would amend the social security act to allow a spouse to continue to receive surviving spouse benefits after he or she remarries. The current law in effect stops benefits if a surviving spouse remarries.
The first question the senators asked during the hearing was, “Would there be incurred cost if the bill were to become law?”
FSMSS Administrator Narruhn referred the attention of the senators to an

actuarial report made by the Pension Administration Services, Inc. that estimated what would happen if Bill No. 13-59 were to become law.
The report indicated that as of January 1, 2002, the total un-funded liability of the system was at $139,423,000. If the bill were to be passed into law and surviving spouses would continue to receive benefits after remarriage, the deficiency would see an increase that would exceed $1 million.
Steve Finnen, the FSMSSA Attorney, cautioned the senators that making changes to the social security statures should be carefully considered or the program would require additional funding other than tax collections.
The subsequent questions asked how the FSMSSA determines a remarriage. FSMSS Administrator Narruhn revealed that a marriage might be determined as a statutory (ceremonial) marriage, customary marriage, or common-law marriage.
A customary marriage was defined as a marriage that conforms to the accepted customs of that jurisdiction or state. A common-law marriage is a marriage based not upon ceremony and compliance with legal formalities but upon the agreement of two persons to live with each other under one roof.
Other questions concerned the retroactive payments and the limits placed on these payments. The FSMSS Administrator revealed that if there is substantial evidence for the FSMSSA to believe that a spouse has remarried, payments are put on hold pending a full investigation into the matter. If it turns out that there was no actual remarriage, then unlimited retroactive payments will be made.
Near the end of the hearing, Mr. Narruhn revealed that as a result of the Asset Liability Study done by Merrill Lynch, a project to forecast the viability of the program within the next 20 years is underway. This project may result in amendments to the SS Act in line with our efforts to make improvements to the system’s deficiency. Members of the committee took this as a good reason to wait for the study to give them a better understanding of what might happen if the bill were to become law.
The FSMSS Administrator Alexander R. Narruhn reminded the senators at the end of the hearing that according to the law, there has to be an actuarial report attached to a bill if it is to become law. And in the case of Congressional Bill 13-59, the actuarial study does not concur with the change at this time.

Note:

• On January 27, 2004, the 13th FSM Congress passed Bill 13-59 on the First Reading.

Posted on 01/29/04.

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