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Palau Social Security System Amendments, RPPL No. 9-11 2013

PALAU

A BILL FOR AN ACT

To amend Title 41 of the Palau National Code to allow an individual born before January 1, 1954 to receive the full amount of the Surviving Spouse's Insurance Benefit, and for other related purposes.

THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:

Section 1. Legislative Findings. The Olbiil Era Kelulau finds that the current legislation governing the Republic of Palau's Social Security System dictates that a surviving spouse, while he or she is eligible to receive his or her deceased spouse's social security benefits, such benefits are to be reduced by either the amount of his or her own social security old age or disability benefit, or by application of the earnings test. The Olbiil Era Kelulau finds that often, survivors rely on the surviving spouse insurance benefit as a major source of income and these required reductions leave the surviving spouse at a harsh economic disadvantage. As such, the Olbiil Era Kelulau now finds it necessary to amend the current law to allow for a surviving spouse to receive the entire amount of his or her deceased spouse's social security benefits along with his or her own old age or disability insurance, and also avoid further reduction of such benefits caused by application of the earnings test.
Section 2. Amendment. Section 755 of Title 41 of the Palau National Code is hereby amended as follows:

"§ 755. Surviving spouse's insurance benefit.

(a)  . . .

(b)  . . .

(c) If the surviving spouse was born before January 1, 1954, and the surviving spouse is eligible to receive both the surviving spouse insurance benefit and another benefit, the surviving spouse shall receive the full amount of the surviving spouse insurance benefit. If the surviving spouse was born on or after January 1, 1954, and the surviving spouse is eligible to receive both the surviving spouse insurance benefit and another benefit, the surviving spouse insurance benefit shall be sixty percent (60%) of the surviving spouse insurance benefit. However, if the surviving spouse was born on or after January 1, 1954, and the surviving spouse became eligible to receive both the surviving spouse insurance benefit and another benefit prior to August 2, 2007, the surviving spouse shall receive the full amount of the surviving spouse insurance benefit.

(d) . . .

(e) If a surviving spouse beneficiary is eligible to receive another benefit, such beneficiary shall have the option to receive both benefits on a monthly basis in accordance with this Chapter, or to receive either benefit in one lump sum, the amount of which shall be determined in accordance with this Chapter, while continuing to receive the other benefit on a monthly basis in accordance with this Chapter."

Section 3. Amendment. Section 761 of Title 41 of the Palau National Code is hereby amended as follows:

"§ 761. The earnings test.

(a)  . . .

(b) . . .

(c) . . .

(d) A surviving spouse beneficiary qualifying under subsection (c)(2) shall receive such benefit at the level in existence immediately prior to August 2, 2007, unless such beneficiary received an increase in his surviving spouse benefit as a result of the enactment of RPPL No. 7-32.

(e)  . . ."

Section 4. Amendment. 41 PNC § 751 is hereby amended as follows:

"§ 751. Basic benefit formula.

(a) . . .

(b) . . .

(c) Effective October 1, 2013, the minimum amount of the basic benefit, as applied to all benefits listed in § 752 of this chapter, shall be one hundred forty-eight dollars ($148)."

Section 5. Amendment. Sections 753, 754, and 757 of Title 41 of the Palau National Code are hereby amended as follows:

"§753. Old age insurance benefit.

(a) . . .

(b) The monthly amount of the benefit is the basic benefit, with a minimum monthly benefit of one hundred forty-eight dollars ($148).

. . .

(e) Subject to section 753(b) of this Chapter, the maximum limit of the basic monthly benefit is one hundred percent (100%) of the highest monthly average wage of the wage earner over any twelve (12) quarters out of the last forty (40) quarters preceding retirement; provided, however, that such limit shall not be implemented until three (3) years from the effective date of this chapter, and provided further that such limit shall apply only to persons applying for benefits subsequent to such implementation date.

§754. Disability insurance benefit.

(a) . . .

(b) Subject to subsection (a) and (b), the monthly amount of the benefit is the basic benefit, with a minimum monthly benefit per month, one hundred forty-eight dollars ($148).

(c) Subject to Section 254(b) of this Chapter, if the person is receiving a periodic workmen's compensation benefit, the disability insurance benefit shall be reduced in any month by the amount in which the total of the workmen's compensation benefit plus the basic benefit exceeds eighty percent (80%) of one-twelfth (1/12) of the highest annual remuneration on which contributions were made in the period consisting of the year in which the disability occurred and the preceding five (5) years.

(d) . . .

. . .

§757. Maximum and minimum amounts of survivors insurance benefit.

(a) . . .

(b) The minimum amount of the total of a survivor's insurance benefit is one hundred forty-eight dollars ($148) month, computed before the application of section 755(c).

(c)..."

Section 6. Rules and Regulations. Pursuant to 41 PNC § 711 and § 712 (d), the Social Security Board shall hereby promulgate rules and regulations in accordance with this Act within sixty days of enactment of this Act.

Section 7. Amendment. Section 2 of RPPL No. 8-47 is amended as follows:

"Section 2. Foreign Fishing Revenue Distribution.

(a) . . .

(b) . . .

(c) Beginning with funds received in Fiscal Year 2011, all revenue derived from the fishing agreements shall hereby be divided between the national government and the state governments as follows:

(1) 15% of the revenue shall go to the national government. In fiscal years 2014, 2015, and 2016 this 15% of revenue shall be deposited in the Social Security Fund which shall be applied to retire any debts to the Social Security Fund incurred by the national government in its capacity as an employer; the National Treasury shall transmit the revenue to the Social Security Fund no later than sixty (60) days upon receipt.

(2) 55% shall be equally divided among the states.

(3) 30% shall be divided among the states according to the population of each state as stated in the most recent national government census.

(d) . . ."

Section 8. Effective date.

This Act shall take effect on October 1, 2013, except as otherwise provided by law.

PASSED: August 2, 2013

Approved this __20th__ day of ___August________, 2013

______________/s/___________________
Tommy E. Remengesau, Jr.
President of the Republic of Palau