SS says can’t implement new law to pay full benefits to 60 yr old retirees
Cites lack of actuary study and unclear language that creates differential treatment
By: L.N. Reklai
January 26, 2017 (Koror, Palau) Social Security Administration Board of Trustees have informed President Remengesau Jr. in a letter that they are unable at this time to implement Section 31 of RPPL 9-62, to lower the retirement age back to 60 from 62 without a report from the actuary. [restrict]
RPPL 9-62 amends previous law by allowing a person who has reached 60 years of age to get their full retirement benefit. In the previous law, when a person reaches 60 years of age, they will receive 88% of their retirement benefit. When they reach 61 years of age, they will receive 94% and when they reach 62, they will receive 100%.
RPPL 9-62 amended these and mandated that any eligible person reaching 60 years of age will receive 100% of their retirement benefit.
Social Security Administration Board of Trustees expressed concern that the sudden increase in benefit payouts may negatively impact the Retirement Fund and an actuary study is necessary in order for the Board to ensure the continued health of the system.
The letter also cites that PNC 41 Section 704 mandates any amendment to the Social Security Act that may have financial implication must be accompanied by the report of the actuary.
Citing also differential treatment to surviving spouse beneficiaries, Social Security Board of Trustees also ask that other related laws such as RPPL 9-11 and 9-12 be reviewed and amended to ensure that no differential treatment is made within the same Act.
Social Security Board of Trustees says they have requested an actuary report and is waiting before they can implement the Section 31 of RPPL 9-62. [/restrict]