Marshall Islands Social Security Administration

Lump Sum

lumpsum

Lump Sum

Lump-sum Death Payment Application Form

The wage earner should be at least 60 years of age or disabled upon application for lump sum benefits and is not eligible to receive normal retirement benefits, meaning the applicant must have less than 38 quarters of contributions and at least 60 years of age, or disabled (regardless of age).

Who are eligible to receive lump sum benefits?
A lump sum benefit is also given to the surviving family of a wage earner who dies while the deceased wage earner is not yet eligible to receive retirement benefits.
Pursuant to to Section 141 of the Social Security Act (the “Act”) found at 49 MIRC 141:
  1. If a worker or self-employed worker permanently ceases to work for reason of old age, illness, physical disability or any other reason which has an adverse effect on the ability of such person to perform his or her duties, and rights to insurance benefits with respect to the worker or self-employed worker have not otherwise accrued, a lump sum benefit equal to eighty percent (80%) of his or her cumulative contributions to the retirement fund shall be paid to such worker.

  2. If after a worker or self-employed worker dies and all rights to survivor’s insurance benefits with respect to the worker or self-employed worker have ceased, a lump sum benefit equal to eighty percent (80%) of his or her cumulative contributions to the retirement fund, less the amount of benefits actually received by the worker or the self- employed worker, or his survivors, if any, shall be paid.

  3. The lump-sum benefit shall be paid to the spouse, and in the absence of the spouse, shall be paid to the children in equal shares, or guardian, if such children are minors, and in the absence of both, shall be paid to the parents in equal shares.

  4. In the absence of the persons referred to in Section 3, the lump sum benefit shall be paid to the persons specified under the prevailing laws and customs with respect to intestate succession in the domicile of the deceased worker or the deceased self- employed worker at his or her death.

  5. If a non-resident worker or self-employed worker permanently ceases to work and leave the Marshall Islands, he or she may elect a lump-sum benefit equal to eighty percent (80%) of his or her cumulative contributions to the retirement fund. If, however, he or she elect to reside in the Marshall Islands and ceases to work for reason of old age, illness, physical disability or any other reasons, he or she may elect to receive monthly benefits, provided that where he or she later elect a lump-sum benefit, such lump sum benefit should be equal to eighty percent (80%) of his or her cumulative contributions to the retirement fund, less the amount of benefits actually received.

  6. Any beneficiary who received benefits prior to Nov. 2, 2018 will be grandfathered and may elect for lump-sum benefit of eighty percent (80%) of his or her cumulative contributions to the retirement fund, less the amount of benefits actually received, except where beneficiary who exceeded his or her cumulative covered earnings and continues to receive benefits, he or she, or his or her survivors shall benefit only on monthly cash benefits.

  7. From the eighty percent (80%) lump sum payment, thirty percent (30%) shall be withheld by the Administration for not less than 90 days from the disbursement of said payment.