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Fund: No govt agency remitting to WCC
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Posted on May 04 2009
The NMI Retirement Fund says not a single government agency has remitted funds to the Workers Compensation Commission as required by law, and this may be grounds for denial of WCC coverage for any government employee injured on the job.
Fund administrator Mark A. Aguon said the failure of the government as an employer to remit its legally obligated amount to the WCC Government Employee’s Self-Insurance Fund or the Special Disability Fund has caused a lapse in coverage for government employees.
In a letter to government department and activity heads, Aguon said the failure to pay triggers the application of penalties and interest.
He also said failure to remit the appropriate funds not only unduly “taxes” the private industry, but it is also clear grounds for WCC coverage denial for any government employee who is injured on the job.
“Therefore, no worker’s compensation coverage exists for government employees’ workplace injuries of non-contributing government employers,” Aguon said.
If the government employer of over 200 employees has elected to be self-insured, there is a duty to pay into the Special Disability Fund an amount equal to 1 percent of the total salaries paid, but not to exceed $1,500 for every employer.
The budget law showed seven government employers of over 200 employees each, and 30 government employers of less than 200 employees each.
Aguon said government employers of less than 200 employees still retain a duty to obtain WCC policy coverage.
In a phone interview, Aguon said no payments have been received nor policies filed with WCC as of yesterday.
The Fund administrator said the failure to make these required payments forces the private industry to shoulder this burden and acts as an indirect tax on these private employers and carriers.
“As former scions of private industry, the central government’s individual decision-makers cannot claim ignorance of this obligation. Prompt payment may remedy this situation, yet does not remove the coverage gap which exists for any current non-payment of this legal obligation,” Aguon added.
WCC and the Group Health and Life Insurance Plan are under the NMI Retirement Fund.
