Chapter 7:  Social Security
Board and Administration

§ 701.   Board — Established — Composition — Compensation.
§ 702.   Board — Powers and duties generally.
§ 703.   Promulgation of regulations — Hearings — Employees — Annual report.
§ 704.   Maintenance of records — Disclosure of records.
§ 705.   Appointment of branch managers.
§ 706.   Audit of records — Power to subpoena — Administration of oaths.
§ 707.   Actuaries and actuarial valuations.
§ 708.   Review of Board determinations.

     § 701.  Board — Established — Composition — Compensation.
     There is created a Federated States of Micronesia Social Security Board of five members nominated by the President and confirmed by the Congress of the Federated States of Micronesia to operate the Social Security Program authorized by this subtitle.  Nominations to the Board shall take into account the need to have adequate geographical representation and to have representatives from public and private sector employers and employees.  Members of the Board shall serve three_year terms, and the Board shall provide for its own organization and procedure.  Any vacancies on the Board shall be filled for the unexpired term only.  Where a vacancy is for one year or less, it shall be filled by appointment by the President, otherwise vacancies shall be filled by nomination by the President and confirmation by the Congress.  The Social Security Administrator shall be an ex officio member of the Board.  Members of the Board who are not State or National Government employees shall be paid at the rate of $30 per day and necessary travel expenses when actually attending meetings of the Board.

Source:  PL 2-74 § 201; PL 5-120 § 5.

     § 702.  Board — Powers and duties generally.
     The Board shall have the powers and privileges of a corporation, shall have an official seal, and shall in the name of “Federated States of Micronesia Social Security Administration” transact all business, enter into contracts, invest all funds or retain a firm to invest or reinvest funds under the Board’s supervision, and, under its rules, regulations, and conditions, transfer or assign such funds as herein authorized, purchase annuities, and hold in trust for the purposes for which received, all cash, securities, and other properties of the system.  In the name “Federated States of Micronesia Social Security Administration” it may sue and be sued.  The responsibility for the proper operation of this subtitle shall be vested in the Board.  The Board shall appoint a Social Security Administrator who shall have responsibility for the general administration of the Social Security System, and who shall have the power to employ and to delegate duties to such employees of the Social Security Administration as deemed feasible and desirable to carry out the provisions of this subtitle.

Source:  PL 2-74 § 202.
     § 703.  Promulgation of regulations — Hearings — Employees — Annual report.
     The Board may adopt, amend, or rescind regulations for the administration of this subtitle pursuant to chapter 1 of title 17 of this code.  It may hold hearings or make decisions upon hearings delegated to others for the purpose of determining any question involving any right, benefit, or obligation of any person subject to this subtitle.  It may fix the compensation of such employees it deems necessary within the limits of available administrative funds budgeted for its operation, and it may contract for special actuarial and other counseling on a fee basis.  It shall bond itself and its employees in such amounts as it shall fix.  It shall receive audited accounts of the Social Security System within 90 days of the end of the fiscal year of the system and transmit these accounts to the President and the Congress of the Federated States of Micronesia.  The annual accounts and reports shall be made available to the public.  It shall submit to the President and the Congress for each fiscal year a report on its operations and the condition of its funds, and subject to section 707 of this chapter, in such report shall make recommendations for amendments to this subtitle as it deems desirable.

Source:  PL 2-74 § 203.

Cross-reference:  Chapter 1 of title 17 of this code is on FSM Administrative Procedures.

     § 704.  Maintenance of records — Disclosure of records.
     The Administrator shall receive and maintain files and records of all employers and all employees subject to this subtitle.  Such records shall not be disclosed to any person except as may be required in the administration of this subtitle or in connection with a hearing conducted in accordance with the provisions of this subtitle.

Source:  PL 2-74 § 204.

     § 705.  Appointment of branch managers.
     The Administrator shall have the authority to employ branch managers and delegate such power to such branch managers as may by regulation be prescribed.

Source:  PL 2-74 § 205.

     § 706.  Audit of records — Power to subpoena — Administration of oaths.
     The Board and its authorized representatives shall have the power to audit employer records, issue subpoenas, and administer oaths appropriate to the administration of this subtitle.

Source:  PL 2-74 § 206.

Case annotations:  Congress may constitutionally authorize by statute administrative agencies to perform many different investigatory functions, among them the auditing of books and records, the issuance of subpoenas requiring the disclosure of information relevant to the agency’s functions, and requiring the sworn testimony of witnesses. FSM Social Security Admin. v. Weilbacher, 7 FSM Intrm. 137, 141-42 (Pon. 1995).

     § 707.  Actuaries and actuarial valuations.
     The Board shall employ or contract with actuaries or actuarial firms for the purpose of making actuarial valuations of the Federated States of Micronesia Social Security System not less frequently than each three years after the date of commencement of the system.  Such reports made to the Board shall be submitted with appropriate recommendations for changes in the system and amendments to this subtitle to the President and to the Congress of the Federated States of Micronesia.  An actuarial report prepared by a qualified actuary which analyzes the impact on the system of any proposed amendment which has financial implications must accompany the proposed amendment.  In particular, proposals to amend section 603, sections 801 to 807, inclusive, sections 901 and 902 or chapter 10 of this subtitle must be accompanied by an actuarial report.

Source:  PL 2-74 § 207, modified.

     § 708.  Review of Board determinations.
     Any person aggrieved by a final order of the Board may obtain a review of the order in the Trial Division of the Supreme Court of the Federated States of Micronesia by filing in Court, within 60 days after the entry of the order, a written petition praying that the order be modified or set aside in whole or in part.  A copy of the petition shall be served on the Board, by service on its secretary or other designated agent, and thereupon the Board shall certify and file in Court a copy of the record upon which the order was entered.  The findings of the Board as to the facts, if supported by competent, material, and substantial evidence, shall be conclusive.  If either party applies to the Court for leave to adduce additional material evidence and shows to the satisfaction of the Court that there were reasonable grounds for failure to adduce the evidence in the hearing before the Board or its authorized representatives, and that such evidence is competent, material, and substantial, the Court may order the additional evidence to be taken by the Board and to be adduced upon the hearing in such manner and upon such conditions as the Court considers proper.  The Board may modify its findings and order after receipt of further evidence together with any modified or new findings or order.  The judgment of the Court upon the record shall be final, subject to review by the Appellate Division of the Supreme Court upon petition of any aggrieved party, including the Board, within 60 days from judgment.

Source:  PL 2-74 § 208.

Cross-reference:  The statutory provisions on the Judiciary are found in title 4 of this code.  The statutory provisions on Judicial Procedures are found in title 6 of this code.