Retirement benefits
The Retirement Fund was established to provide a financially sound social security system with pension benefits and early retirement, whereby workers would obtain a measure of financial security in their old age and during disability, and whereby surviving spouses and children of deceased workers would receive some financial support after the death of the worker.
Retirement benefits are computed on the Basic Benefit. The basic benefit is one-twelfth (1/12) of the sum of the pension element and the social element, where the pension element is two percent (2%) of indexed covered earnings and the social element is fourteen and one-half percent (14.5%) of the first $11,000 of cumulative covered earnings plus seven tenths percent (0.7%) of cumulative covered earnings in excess of $11,000 but not in excess of $44,000.
Retirement benefits
a. Early retirement benefits - to be entitled, the claimant must be: (i) service insured; (ii) have attained the age of 55; and (iii) have filed an application.
“Service insured” means having earned at least 80 quarters of coverage.
b. Normal Retirement benefits - to be entitled, a claimant must be: (i) fully insured; (ii) have attained the age of 60; (iii) have filed an application; and (iv) have not applied for and received early retirement benefits.
“Fully insured” means having earned at least one quarter of coverage for each year commencing after after the later of (a) the year beginning after June 30, 1968 or (b) the year beginning after the worker attains the age of 21, and up to but excluding the year of the worker's retirement, disability or death, provided that a minimum of twelve quarters of coverage are required.
c. Deferred retirement benefits - to be entitled, the claimant must be: (i) fully insured; (ii) have attained the age of 60 and one month; (iii) have filed an application; and (iv) have not applied for and received early retirement benefits or normal retirement benefits.
Reduction of Retirement Benefits Bases upon Subsequent Earnings
With respect to claimants under the age of 62, the Retirement Benefit amount will be reduced by $1.00 for every $3.00 earned in a quarter in excess of $1,500. The adjustment in benefits will be applied as soon as practicable following the quarter in which the earnings were made and reported. No adjustment is made for claimants who have attained the age of 62 years.
Example: If a Claimant earns a total of $2,000 for a quarter, while receiving a Retirement Benefit of $300.00 per month, the benefit can be reduced during the three-month period, beginning with the first month after the quarter in which the earnings were made and reported. The computation is as follows:
Subtract $1,500 from $2,000 leaving $500. For every $3.00 in excess of $1,500, the quarterly benefit is reduced by $1.00. The amount of reduction in the quarterly benefit is calculated by dividing $500 by 3, which equals $166.66. Subtract the $166.66 reduction from the quarterly benefit ($300 X 3 months = $900) and then divide the result, ($900 - $166.66 = 733.84), by 3 yielding the adjusted monthly benefit of $244.61. This will be paid for a three-month period, after which time the regular amount will be resumed, unless additional earnings in excess of $1,500 are reported for subsequent quarters.
Suspension of Retirement Benefits
a. If a Claimant is not a citizen or national of the Marshall Islands, his Retirement Benefits will be suspended for any month after the sixth consecutive month during which the claimant is outside the Marshall Islands.
b. The above provision does not apply to any Claimant who is a citizen or national of the Federated States of Micronesia, the Republic of Palau, or the United States of America, if the Federated States of Micronesia, the Republic of Palau, and the United States of America, respectively, extend periodic benefits on account of retirement to citizens and nationals of the Marshall Islands who are not citizens of the subject country, who qualify for such benefits, and who are permitted to receive such benefits outside the country without regard to the duration of the absence.
Termination of Retirement Benefits
Retirement Benefits terminate the month before the month in which the Claimant dies.
Re-computation of Retirement Benefits Based upon Subsequent Earnings
If a Claimant of Retirement Benefits earns covered wages after becoming eligible and receiving Retirement 
Benefits, his benefits will:
a. Be recomputed to reflect the increased earnings after each calendar year in which the earnings were made; and
b. The adjusted benefit will be payable beginning with the first month following the year in which the earnings were made.
c. Example: Additional earnings during calendar year 1991 will be recomputed on the basis of the new cumulative earnings, with the new benefit rate effective for January 1992.
Estimated Benefits
a. Any Wage Earner is entitled to know what his Retirement Benefits may be, even though he does not plan to retire at that time. In such cases, it is desirable to have the wage earner complete a retirement application. Once this is done, the Administration shall compute the Retirement Benefit; provide a copy of the computation to the Wage Earner; attach a copy of the computation to the pro-forma application; and file the pro-forma application and computation for future reference.
b. If the Wage Earner would also like to know what his benefits may be if he continues to work, the Administration, based upon prior earnings, shall determine the Wage Earner's prospective covered earnings and indexed covered earnings for the years he plans to continue working. Add these amounts to the cumulative covered earnings and indexed covered earnings to date and calculate the future benefit on the basis of the present benefit formula.
Disability benefits
Entitlement to Disability Benefits
The requirements for entitlement to Disability Benefits are as follows:
a. The Claimant must be or have been unable to engage in the continued performance of his duties because of a mental or physical impairment.
b. The period of disability is expected to result in death or to last at least 12 months.
c. The Claimant must have been both fully and currently insured at the time of becoming disabled.
d. An application must have been filed for Disability Benefits with respect to the Claimant.
“Currently insured” means having earned at least six quarters of coverage during the most recent forty (40) quarters ending with the quarter of the worker's retirement, disability or death, whichever first occurs. Currently, the minimum disability insurance benefit is $128.99.
Commencement of Disability Benefits
A Claimant for Disability Benefits becomes entitled to such benefits beginning with the first month of his disability; provided, however, the maximum period for which such benefits shall be paid retroactively before the date of the application is 18 months for claims filed prior to September 30, 1992, and 12 months for claims filed on or after October 1, 1992.
Amount of Disability Benefits
a. Subject to Paragraphs 4.b. and 4.c. and the other paragraphs of the Claims & Benefits Manual, the monthly Disability Benefit shall be the Basic Benefit, but in no event shall the Disability Benefit be less than $128.99. The Basic Benefit is as defined in Paragraph 4.a. of Article I of the Claims and Benefits Manual.
b. If a Claimant is receiving periodic workmen's compensation benefit, the Disability Benefit shall be reduced, in any month, by the amount that the sum of the workmen's compensation benefit for that month plus the Basic Benefit exceeds eighty percent of one-twelfth of the highest annual earning on which contributions were made in the period consisting of the calendar year in which the disability occurred and the preceding five years.
c. If a workmen's compensation benefit was not commuted to a lump sum, it shall be treated as if the periodic benefit, which was originally payable, was in fact paid.
Reduction of Disability Benefits Based upon Subsequent Earnings
With respect to Claimants under the age of 62, the Disability Benefit amount will be reduced by $1.00 for every $3.00 earned in a quarter in excess of $1,500. The adjustment in benefits will be applied as soon as practicable following the quarter in which the earnings were made and reported. No adjustment is made for Claimants who have attained the age of 62 years.
Suspension of Disability Benefits
a. If the Claimant is not a citizen or national of the Marshall Islands, his Disability Benefits will be suspended for any month after the sixth consecutive month during which the Claimant is outside the Marshall Islands.
b. The above provision does not apply to any Claimant who is a citizen or national of the Federated States of Micronesia, the Republic of Palau, or the United States of America, if the Federated States of Micronesia, the Republic of Palau, and the United States of America, respectively, extend periodic benefits on account of retirement to citizens and nationals of the Marshall Islands who are not citizens of the subject country, who qualify for such benefits, and who are permitted to receive such benefits outside the country without regard to the duration of the absence.
Evidence of Continued Disability
a. The Administrator may, at any time, require a Claimant who is receiving a Disability Benefit to provide evidence necessary to confirm his entitlement to that benefit.
b. Unless otherwise waived by the Administrator, at least once every three-year period, the Administrator shall require the Claimant to undergo a medical examination by a physician or physicians selected by the Administrator. If the examination indicates that the Claimant is no longer disabled, payment of the Disability Benefit shall be discontinued.
c. For the purposes of this Section, recovery from disability shall mean that the Claimant may once again engage in substantial gainful employment.
d. If the Claimant refuses to submit a medical examination or provide other evidence as required by the Administrator, the Disability Benefit shall be discontinued. If the refusal continues for two (2) years, all rights to the Disability Benefit shall be permanently revoked.
e. In the case of a Claimant who is below the age of 18 years, a requirement may be addressed to a parent or guardian of the said minor Claimant.
f. Absent evidence of fraud or other wrongdoings, Disability Benefits shall not be discontinued retroactively.
Termination of Disability Benefits
Disability Benefits terminate the month before the month in which the Claimant recovers from the disability or dies, whichever occurs first. Recovery from disability shall mean the Claimant may once again engage in substantial gainful employment.
Survivor benefits
Entitlement to Surviving Spouse Benefits
The requirements for entitlement to Surviving Spouse Benefits are as follows:
a. The Claimant must have been the spouse of the Wage Earner at the time of his death;
b. The deceased Wage Earner must have been fully or currently insured at the time of his death; and
c. The Claimant must have filed an application for Surviving Spouse Benefits.
Spouse Defined
The “Spouse” means the person to whom the Wage Earner was legally or customarily married at the time of his death.
a. Legal Marriage: A marriage between the Claimant and the Wage Earner that must have been performed and solemnized in accordance with 26 MIRC 4 Section 429,or the statutes of the jurisdiction of the Wage Earner at the time of their marriage. A certified copy of the public or church record or the original marriage certificate may prove a legal marriage.
b. Customary Marriage: A marriage between the Claimant and the Wage Earner that must have been contracted and consummated in accordance with the statutory law, customary law and traditional practice of the Marshall Islands. A customary marriage must be confirmed by the High Court of the Marshall Islands. Furthermore, customary marriage can be recognized only when the legal spouse is dead or divorced.
Commencement of Surviving Spouse Benefits
A Claimant for Surviving Spouse Benefits becomes entitled to such benefits beginning with the month of the death of the Wage Earner; provided, however, the maximum period for which such benefits shall be paid retroactively before the date of the application is 18 months for claims filed prior to September 30, 1992, 12 months for claims filed on or after October 1, 1992.
Amount of Surviving Spouse Benefits; Generally
The monthly Surviving Spouse Benefit shall be 100% of the Basic Benefit; provided, however;
a. The total monthly survivor's insurance benefits payable to both the Surviving Spouse and the Surviving Children shall neither exceed the Basic Benefit applicable to the deceased Wage Earner nor be less than $128.99; and
b. Where more than one person is entitled to survivor's benefits, the payments shall be made to all such beneficiaries proportionately to the percentage of the Basic Benefit due them.
Reduction of Surviving Spouse Benefits Based upon Subsequent Earnings
With respect to Claimants under the age of 62, the Surviving Spouse Benefit amount will be reduced by $1.00 for every $3.00 earned in a quarter in excess of $1,500. The adjustment in benefits will be applied as soon as practicable following the quarter in which the earnings were made and reported. No adjustment is made for Claimants who have attained the age of 62 years.
Suspension of Surviving Spouse Benefits
a. If the Claimant is not a citizen or national of the Marshall Islands, his Surviving Spouse Benefits will be suspended for any month after the sixth consecutive month during which the Claimant is outside the Marshall Islands.
b. The above provision does not apply to any Claimant who is a citizen or national of the Federated States of Micronesia, the Republic of Palau, or the United States of America, if the Federated States of Micronesia, the Republic of Palau, and the United States of America, respectively, extend periodic benefits on account of survival to citizens and nationals of the Marshall Islands who are not citizens of the subject country, who qualify for such benefits, and who are permitted to receive such benefits outside the country without regard to the duration of the absence.
Evidence of Continued Entitlement
a. The Administrator may, at any time, require a Claimant to provide evidence to the satisfaction of the Administration of his entitlement to the Surviving Spouse Benefit.
b. If the evidence required is not produced within the time fixed by the Administrator, he may suspend payment of the benefit until such time the required evidence is produced.
Termination of Surviving Spouse Benefits
Surviving Spouse Benefits terminate the month before the month of the death or remarriage of the surviving spouse, whichever occurs first.
Entitlement to Surviving Child Benefits
The requirements for entitlement to Child Benefits are as follows:
a. The Claimant must have been the child of the Wage Earner at the time of his death;
b. The Claimant must have been dependent upon the Wage Earner at the time of his death;
c. The deceased Wage Earner must have been fully or currently insured at the time of his death; and
d. An application for Surviving Child Benefits must have been filed with respect to the Claimant.
Child and Dependency Defined
a. A “Child” means a Wage Earner's natural, legally adopted, customarily adopted, or step child; provided the Wage Earner's parental rights with respect to the child have not been terminated. A customary adoption must be confirmed by the High Court of the Republic of the Marshall Islands.
b. A natural or legally adopted child is presumed dependent upon the parent, absent evidence to the contrary.
c. A customarily adopted child or a stepchild is dependent upon the parent only if at the time of the parent's death the child had lived in the parent's home continuously for one year and, during that time, the parent was contributing at least one-half (1/2) of the child's support.
Commencement of Surviving Child Benefits
A Claimant for Surviving Child Benefits becomes entitled to such benefits beginning with the month of the death of the Wage Earner; provided, however, the maximum period
for which such benefits shall be paid retroactively before the date of the application is 18 months for claims filed prior to September 30, 1992, 12 months for claims filed on or after October 1, 1992.
Amount of Surviving Child Benefits; Generally
Subject to the other paragraphs of this Article, the monthly Surviving Child Benefit shall be 25% of the Basic Benefit; provided, however,
a. The total monthly survivor's insurance benefits payable to both the Surviving Spouse and the Surviving Children shall neither exceed the Basic Benefit applicable to the deceased Wage Earner nor be less than $128.99; and
b. Where more than one person is entitled to survivor's benefits, the payments shall be made to all such beneficiaries proportionately to the percentage of Basic Benefit due them.
Suspension of Surviving Child Benefits
a. If the Claimant is not a citizen or national of the Marshall Islands, his Surviving Child Benefits will be suspended for any month after the sixth consecutive month during which the Claimant is outside the Marshall Islands.
b. The above provision does not apply to any Claimant who is a citizen or national of the Federated States of Micronesia, the Republic of Palau, or the United States of America, if the Federated States of Micronesia, the Republic of Palau, and the United States of America, respectively, extend periodic benefits on account of survival to citizens and nationals of the Marshall Islands who are not citizens of the subject country, who qualify for such benefits, and who are permitted to receive such benefits outside the country without regard to the duration of the absence.
Evidence of Continued Entitlement
a. The Administrator may, at any time, require a Claimant to provide evidence to the satisfaction of the Administration of his entitlement to the Surviving Child Benefit.
b. If the evidence required is not produced within the time fixed by the Administrator, he may suspend payment of the benefit until such time the required evidence is produced.
Termination of Surviving Child Benefits
Surviving Child Benefits terminate the month before the month of the occurrence of any of the following events:
a. The death of the Claimant;
b. The marriage of the Claimant;
c. The attainment of the age of 18 years by the Claimant, except that the Claimant shall be entitled to Surviving Child Benefits until he attains the age of 22 if he is a bona fide student. If the Claimant became disabled before attaining the age of 22, he shall be entitled to Surviving Child Benefits until his recovery or his death;
d. The adoption of a Claimant by another parent, except for adoption subsequent to the death of the Wage Earner by an aunt, uncle, stepparent, or grandparent; and
e. The assumption of custody of or support for the Claimant by a natural parent, where the Claimant receives Surviving Child Benefits as a result of a customary adoption.
Bona Fide Student Defined
a. A “bona fide student” is a person who is enrolled at an educational institution licensed by the jurisdiction in which the institution is located and attends the institution on what the institution defines as a “full-time” basis. A student who is “full-time” for any part of a month is considered full-time for the entire month.
b. To evidence his status as a “bona fide student”, a Claimant shall have the educational institution complete and send to the Administration a certification of attendance. The certificate should include the following:
i. Name and address of the educational institution;
ii. Name of the student; and
iii. Date(s) of attendance as a “full-time” student.
Lump sum benefits
Entitlement to Lump-Sum Benefit
If monthly survivor benefits are not paid or are stopped because all beneficiaries become disqualified as a result of death, remarriage, adoption, attainment of age 18 (or age 22 if a bona fide student), or recovery from disability, a Lump-Sum Benefit is due; provided that the benefits paid for under the Wage Earner's account are less than 4% of his cumulative covered earning.
Amount of Lump-Sum Benefit
The Lump-Sum Benefit equals the total cumulative earnings multiplied by 4% less the total monthly benefits already received under the Wage Earner's account.
Payee
If the deceased Wage Earner had a will, the Lump-Sum Benefit shall be paid in accordance with his will. If there is no will, the Lump-Sum Benefit is paid in the following order:
a. To the spouse;
b. In the absence of a spouse; to the children in equal shares or guardian of such children are minors;
c. In the absence of a spouse or children, to parents in equal shares;
d. In the absence of a spouse, children, or parents, to the duly appointed legal representative of the deceased.
Eligibility requirements
“Insured Status” is the requirement, which must be met before any type of benefit is paid.
Fully Insured: A Wage Earner who is fully insured must have at least one quarter of coverage for each year beginning with the latter of June 30, 1968, or after the year in which he has reached age 21, whichever is later. A minimum of eight (8) quarters of coverage is required.
Currently Insured: A minimum of six (6) quarters of coverage is required during the forty (40) quarter period ending with the quarter in which the Wage Earner becomes entitled to old age insurance benefits, dies, or becomes disabled.
The following table indicates the insurance requirements of the Wage Earner for entitlement to Retirement, Surviving Spouse, Surviving Child and Disability Insurance Benefits:
Marshall Islands Social Security Administration
