New law on permanent disability pensions

House Bill 16-118 which amends the Commonwealth Code’s disability administrative provisions becomes Public Law 16-19.

The governor vetoed H.B. 16-118’s earlier version H.B. 16-81 which were both sponsored by Rep. Joseph C. Reyes, R-Saipan, amid concerns on certain provisions which he believes would make the Retirement Fund susceptible to abuse.

“I vetoed that bill because its language allowed for potential abuses by claimants and threatened the assets of the Retirement Fund by drastically lowering the standards and requirements to be declared permanently disabled, which would have resulted in the certification of an increased number of disabled retirees, and thereby increasing the liability of the Fund,” the governor said in his transmittal letter to the Legislature.

The earlier version of H.B. 16-118 deleted the requirement that a retiree’s disability must be certified by a “physician who is a specialist in the area of disability.”

The governor said this provision would have created more financial troubles for the Retirement Fund.

“Ultimately, the Fund could have been compensating claimants who are not truly permanently disabled,” he said.

The newly signed law addressed this issue through a provision that include the requirement of evaluation by two physicians, one of whom is a specialist in the area of the disability being evaluated.

“Although, I believe the inclusion of a vocational rehabilitation counselor is still necessary and more fool proof than excluding one, the requirement of a specialized physician is sufficient to deter excessive abuse by claimants. This bill [H.B. 16-118] becomes Public Law 16-19,” Fitial said.

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