New Bill Set to Amend Social Security Law

The FSM Social Security Administration has recently submitted a bill to congress which is aimed at amending the social security law to lessen the unfunded liability and to improve the system’s ratio of collections to payments.
The following are the list of amendments in the bill:

1. Require 45 quarters of coverage to be fully insured for disability benefits;
2. Require currently insured status to qualify for disability benefits;
3. Require 50 quarters of coverage to be fully insured for death and old age benefits
4. Allow retirement on or after age 60 but with a 50% reduction in retirement benefits until age 65 without the application of earnings test before 65;
5. Reduce retirment benefits by 30% after the total retirement benefits paid exceed the sum of employee and employer contributions made on behalf of the retiree;
6. Introduce a lump sum payment option for FSM citizens;
7. Limit the payment of surviving spouse benefits to 120 months but not applying to those who are fifty-five years of age or older;
8. Limit surviving children’s benefits to age 20 for bona fide students; and
9. Increase tax rate paid by employees and employers to 7% on October 1, 2008, and then to 7.5% on October 1, 2012

• FSMSS Board of
  Trustees Meets in
  Kosrae
• 4th Annual SS
  Administrators
  Meeting
• C.B. 15-52
• CY 2007 3rd
  Qtr. Summary
  Report