How should the FSMSSA handle the problem of retirees or claimants who take jobs abroad?
First, when a retiree goes back to work, an earning test is applied which frequently reduces the amount of the monthly pension payment. When retirees take jobs abroad, e.g. in Guam, Saipan, Hawaii or the mainland, a question arises as to whether the earning test should be applied even if the retirees are no longer paying into the FSMSSA system. Title 53 F.S.M.C. 603(6) states that an earning test to reduce the pension amount is to be applied to any retiree who goes to work in “covered or non-covered employment.” The SS Administration’s legal interpretation is that any and all employment should be considered, whether it is earned within the FSM or abroad. As provided under section 203 of the FSM Public Law 2-74 (Social Security Act), any claimant whose application for benefits is denied by the Administration has the right to appeal the decision to the FSM Board of Trustees.
