Fund Administrator Mark Aguon said WCC records indicate that no government payments have been remitted to the government’s self-insurance fund or the special disability fund.
Aguon said WCC is applying penalties and interest on the government’s mounting arrears and warned that disability benefits cannot be extended to any public servant at this time.
“Notwithstanding previous demands for prompt payment, the failure to remit the appropriate funds shall not only unduly “tax” private industry, it clearly grounds a WCC coverage denial for any government employees who have been injured on the job,” Aguon said in his memorandum circulated yesterday in government offices.
“Therefore, no worker’s compensation exists for government employees’ workplace injuries of non-contributing government employers,” he added.
Aguon said the government’s failure to make these required payments, in turn, forces the private industry to shoulder the burden and acts as an indirect tax on these private employers and carriers.
A CNMI law requires each public and private employer to contribute to the Special Disability Fund.
A government agency with at least 200 employees has the option to be self-insured. However, such entity is still required to pay the special disability fund the equivalent of one percent of the total salaries paid but not to exceed $1,500.
Aguon said their records show there are seven government entities with over 200 employees and 30 more have less than 200 workers.
All of them are not paying their dues to the Special Disability Fund, which is tapped to pay for the medical expenses of an injured public servant while on the job as well as provide for his disability benefits.
