Hawaii, Saipan and Guam Visited for Voluntary Contributions

On October 23, 2006, Public Law 14-86 amended the Social Security Act to allow FSM citizens working abroad to voluntarily pay FSM Social Security taxes to earn the right to benefits. Previously, FSM citizens working abroad were exempt from the program.
The new law enacted a new section, Section 903, to allow for individuals who were previously unable to participate in the program due to constraints within the Social Security Act.
An individual wishing to participate in the voluntary contribution program would be deemed to earn $1,250 a quarter or $5,000 a year. An individual would then pay for 12% of these amounts which would be $150 a quarter

or $600 a year. Because voluntary contributions aren’t mandatory, a person may choose to pay for any number of the four possible quarters in a year. However, a person may not pay for more than four quarters at a time and the deadline for paying for quarters for a year is 60 days into the following year. Furthermore, no penalties or interest will be tallied upon voluntary contributions.
The FSMSSA hopes to increase the reach of its benefits program to FSM citizens living and working abroad. With this new provision, many people who were formerly left out of the program will be able to work toward attaining eligibility for FSM Social Security benefits.
Late August and early September, staff from the FSMSSA visited Hawaii, Saipan and Guam on a public education campaign and introduced the provision to the FSM citizens residing there. Other areas in the states would soon be visited by the staff.
For more information, please contact sspio@mail.fm or go to our website at http://www.fm/fsmss.

Posted on 10/13/2007.

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