TITLE 110

NORTHERN MARIANA ISLANDS RETIREMENT FUND

 

Chapter 110-10          Administrative Rules and Regulations

Chapter 110-20          Americans with Disabilities Act Grievance Procedure Regulations

Chapter 110-30          Group Health and Life Insurance Program

Subchapter 110-30.1             Group Health Insurance Program Rules and Regulations

Subchapter 110-30.2             Group Life Insurance Program Rules and Regulations

Chapter 110-40          Member Home Loan Program Regulations

Chapter 110-50          Workers’ Compensation Commission Rules and Regulations

 

CHAPTER 110-10

ADMINISTRATIVE RULES AND REGULATIONS

 


Part 001          General Provisions

§ 110-10-001   Authority

§ 110-10-005   Purpose

§ 110-10-010   Definitions

 

Part 100          Membership in Retirement Fund

§ 110-10-101   Election of Membership Class

§ 110-10-105   Eligibility for Fund Membership

§ 110-10-110   Services to the Saipan Credit Union

§ 110-10-115   Elected Members of Local Municipal Council

§ 110-10-120   Education Service Credit

§ 110-10-125   Military Service Credit

§ 110-10-130   Applicability of the 5 Year Credit Pursuant to Constitutional Amendment No. 19 and Limitation Re-employment and Double Dipping

§ 110-10-135   Membership Status Upon Subsequent Employment

§ 110-10-140   Re-employment and Double Dipping

 

Part 200          Benefits

§ 110-10-201   Normal Retirement Benefits for Class I Members

§ 110-10-205   Early Retirement Benefits for Class I Members, Post PL 15-70 (effective date June 14, 2007)

§ 110-10-210   Normal Retirement Benefits for Class II Members

§ 110-10-215   Early Retirement Benefits for Class II Members

§ 110-10-220   Disability Benefits

§ 110-10-222   Disability Benefits Policy and Procedure

§ 110-10-225   Service Credit and Other Benefits for Certain Government Officials

§ 110-10-230   Option for Unmarried Employees – Class II Members

§ 110-10-235   Refund of Contribution

§ 110-10-240   Interest Computation for Active Members

§ 110-10-245   Prior Service Credit per Public Law 8-39 [former 1 CMC §§ 8323-8326]

§ 110-10-250   Survivors’ Benefits for Children

§ 110-10-255   Death After Separation — Non-vested Members: Refund to Survivors: No Annuities

§ 110-10-260   Death After Separation — Vested Members: Survivors’ Annuities

§ 110-10-265   Designation of Payee on Behalf of Recipient of Benefits

§ 110-10-270   Reporting Required for Payment on Behalf of Recipients Who Are Incapable of Self-management

§ 110-10-275   Penalty for Failure to File a Report

§ 110-10-280   Vesting Service Credit for Overtime, Compensatory Time and Accumulated Sick Leave

§ 110-10-285   Members With Two or More Concurrent Government Jobs

§ 110-10-290   Early Retirement Bonus

§ 110-10-295   Basis for the Payment of Bonus; Withholdings

 

Part 300          Rights and Obligations

§ 110-10-301   Time for Payments and Method of Payment

§ 110-10-305   Anti-Fraud Provision

 

Part 400          Other Benefits

§ 110-10-401   Cost of Living Allowance (COLA)

§ 110-10-405   Government Life Insurance Contributions and Level of Coverage

§ 110-10-410   Health Insurance Contributions, Term Health Insurance Contributions/Coverage for Defined Contribution Plan Members, and Term Life Insurance Contributions/Coverage for Defined Contribution Plan Members

§ 110-10-415   Survivor’s Benefits upon Death of a Terminated Vested Member [Repealed]

 

Part 500          Appeals

§ 110-10-501   Appeal from Decision of Administrator

§ 110-10-505   Contents of the Notice of Appeal

§ 110-10-515   Appeal to the Board From a Decision of the Hearing Officer [Repealed]

Table 500-1     Administrative Appeals New Process

§ 110-10-520   Legal Representation in Fund Proceedings

 

Part 600          Notice

§ 110-10-601   Address of Record

§ 110-10-605   Notice to the Fund

 

Part 700          Spousal and Child Support Obligations Arising Out of Judicial Proceedings

§ 110-10-701   Spousal and Child Support Obligations Arising Out of Judicial Proceedings Defined

Part 800          Procurement

§ 110-10-801   Adoption of Commonwealth Procurement Regulations

§ 110-10-805   Modifications [Repealed]

 

Part 900          Conditions for Transfer/Conversion of Non-vested Defined Benefit Plan Members into Defined Contribution Plan

§ 110-10-901   Class I Members with Less than 10 Years Contributing Member Service

§ 110-10-905   Election to Participate in the Defined Contribution Plan

§ 110-10-910   Before Accepting the Election to Participate in the Defined Contribution Plan

§ 110-10-915   Upon Making the Election to Participate in the Defined Contribution Plan

§ 110-10-920   Effective Date of Transfer to the Defined Contribution Plan

§ 110-10-925   Transfer of Membership Service from the Defined Benefit Plan to the Defined Contribution Plan

§ 110-10-930   All Other Class I Members and Class II Members

§ 110-10-935   Limitations of Federal Law for Participation in the Defined Contribution Plan

§ 110-10-940   U.S. Internal Revenue Service Notification

 

Part 1000        Employer/Employee Contribution

§ 110-10-1001             Deficient Employer/Employee Contribution

 

Part 1100        Miscellaneous Provisions

§ 110-10-1101             Effective Date


 

 

Chapter Authority: 1 CMC § 8315(g) (renumbered by PL 13-60 (effective Dec. 5, 2003)).

 

Chapter History: Amdts Adopted 34 Com. Reg. 32298 (Feb. 29, 2012); Amdts Proposed 33 Com. Reg. 32094 (Nov. 29, 2011); Amdts Adopted 33 Com. Reg. 31758 (July 22, 2011); Amdts Proposed 33 Com. Reg. 31547 (Apr. 21, 2011); Amdts Adopted 33 Com. Reg. 32092 (Nov. 29, 2011); Amdts Proposed 33 Com. Reg. 31555 (Apr. 21, 2011); Amdts Adopted 32 Com. Reg. 30554 (July 15, 2010); Amdts Proposed 32 Com. Reg. 30341 (May 21, 2010); Amdts Adopted 31 Com. Reg. 29980 (Dec. 22, 2009); Amdts Proposed 31 Com. Reg. 29940 (Oct. 29, 2009); Amdts Adopted 31 Com. Reg. 29205 (Feb. 25, 2009); Amdts Proposed 30 Com. Reg. 28984 (Dec. 22, 2008); Amdts Adopted 30 Com. Reg. 28890 (Oct. 25, 2008); Emergency and Proposed 30 Com. Reg. 28535 (July 28, 2008); Amdts Adopted 30 Com. Reg. 28527 (June 27, 2008); Amdts Proposed 30 Com. Reg. 28507 (May 27, 2008); Amdts Adopted 30 Com. Reg. 28516 (May 27, 2008); Amdts Proposed 30 Com. Reg. 28378 (Mar. 25, 2008); Amdts Adopted 29 Com. Reg. 27943 (Dec. 18, 2007); Amdts Proposed 29 Com. Reg. 27408 (Nov. 19, 2007); Amdts Adopted 29 Com. Reg. 26693 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26666 (July 18, 2007); Amdts Adopted 29 Com. Reg. 26676 (July 18, 2007); Amdts Proposed 29 Com. Reg. 26561 (June 18, 2007); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 19 Com. Reg. 15148 (Feb. 15, 1997); Amdts Proposed 18 Com. Reg. 14299 (Aug. 15, 1996); Amdts Adopted 17 Com. Reg. 13524 (June 15, 1995); Amdts Proposed 17 Com. Reg. 13015 (Mar. 15, 1995); Amdts Adopted 16 Com. Reg. 12439 (Sept. 15, 1994); Amdts Proposed 16 Com. Reg. 11874 (May 15, 1994); Amdts Adopted 16 Com. Reg. 12323 (Aug. 15, 1994); Amdts Proposed 16 Com. Reg. 11921 (June 15, 1994); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993); Amdts Adopted 15 Com. Reg. 11086 (Nov. 15, 1993); Amdts Proposed 15 Com. Reg. 10479 (Feb. 15, 1993); Correction Adopted 15 Com. Reg. 10820 (Sept. 15, 1993); Amdts Adopted 15 Com. Reg. 10571 (Apr. 15, 1993); Amdts Proposed 14 Com. Reg. 10203 (Dec. 15, 1992); Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 7661 (Mar. 15, 1991); Amdts Proposed 12 Com. Reg. 7446 (Nov. 15, 1990); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: PL 1-43 (effective Jan. 18, 1980), formerly codified at 1 CMC §§ 8301, et seq., originally created the Northern Mariana Islands Retirement Fund. PL 6-17 (effective May 7, 1989), the “Northern Mariana Islands Retirement Fund Act of 1988,” codified as amended at 1 CMC §§ 8301-8394, repealed and reenacted PL 1-43, as amended. See PL 6-17, ch. 1 § 8312; see also the commission comment to 1 CMC § 8301. PL 13-60 (effective Dec. 5, 2003), the “Retirement Integrity Assurance Act,” amended numerous provisions of the 1988 NMI Retirement Fund Act.

 

1 CMC § 8312 creates the Northern Mariana Islands Retirement Fund (NMIRF) as an autonomous agency and public corporation of the government of the Commonwealth of the Northern Mariana Islands. NMIRF, through a Board of Trustees, is empowered to establish, maintain and operate a retirement fund program for the public employees of the Commonwealth. 1 CMC § 8315(a). 1 CMC § 8315(g) (renumbered by PL 13-60) authorizes NMIRF to adopt rules and regulations as necessary for the exercise of the funds’ powers, performance of its duties and administration of its operations.

 

NMIRF first promulgated Administrative Rules and Regulations in 1981 pursuant to PL 1-43 § 4(f) (formerly codified at 1 CMC § 8314(f)) and PL 5-48 § 3. The history of the NMIRF Administrative Rules and Regulations from 1981 until July 1989 is as follows: Amdts Proposed 11 Com. Reg. 6140 (Apr. 15, 1989);* Amdts Adopted 10 Com. Reg. 5718 (Oct. 15, 1988); Amdts Proposed 10 Com. Reg. 5618 (Aug. 15, 1988); Amdts Adopted 10 Com. Reg. 5582 (July 15, 1988); Amdts Proposed 10 Com. Reg. 5544 (May 15, 1988); Amdts Emergency 9 Com. Reg. 4991 (July 20, 1987) (effective for 120 days from June 23, 1987);* Amdts Adopted 8 Com. Reg. 4556 (Sept. 15, 1986); Amdts Proposed 8 Com. Reg. 4472 (Aug. 15, 1986); Adopted 5 Com. Reg. 2445 (Aug. 31, 1983); Proposed 5 Com. Reg. 2182 (June 30, 1983); Proposed 3 Com. Reg. 1441 (Nov. 30, 1981);* 3 Com. Reg. 1226 (Mar. 30, 1981) (effective for 120 days from Feb. 4, 1981).*

 

*Notices of permanent adoption for the April 1989, July 1987, November 1981, and March 1981 regulations were never published.

 

After the repeal of PL 1-43 and enactment of PL 6-17 in May 1989, NMIRF promulgated the 1989 NMIRF Administrative Rules and Regulations codified as amended in this chapter.

 

In October and December 2005, NMIRF proposed to re-promulgate this chapter in its entirety with numerous amendments. In March 2006, NMIRF re-promulgated this chapter and adopted numerous amendments as proposed in December 2005. The October 2005 amendments were not adopted and are not included herein.

 

Public Law 15-13, the Defined Contribution Plan Act, codified at 1 CMC § 8451-8478, became effective June 16, 2006. The purposes of PL 15-13 included:

 

(a) To create portable individual retirement accounts for all new public employees hired on or after the effective date of [1 CMC] § 8453;

(b) To provide conditions under which certain Class I members of the Retirement Fund may transfer from the existing defined benefit plan to the new defined contribution plan.

 

Comment to 1 CMC § 8451. In July 2007, the NMIRF amended the definition section § 110-10-010 and adopted part 900 of this chapter to implement the provisions of PL 15-13. See 29 Com. Reg. 26676 (July 18, 2007) and 29 Com. Reg. 26561 (June 18, 2007).

 

Public Law 15-61, effective May 17, 2007, codified at 1 CMC § 8395 provides:

 

Notwithstanding any law, regulation, or a policy to the contrary, the Retirement Fund shall pay the full pension of retirees and shall not be reduced or recalculated on the basis that the employer contributions, in whole or in part, have not been remitted to the Fund. All unpaid retirement government contributions for all affected employees shall be treated as unfunded liability.

 

Public Law 15-70, the Defined Benefit Plan Reform Act of 2007, effective June 17, 2007, made changes to certain retirement provisions of the Commonwealth Code. In August 2007, NMIRF adopted amendments to this subchapter to effectuate the provisions of PL 15-70. See 29 Com. Reg. 26693 (Aug. 17, 2007) and 29 Com. Reg. 26666 (July 18, 2007).

 

Public Law 15-126, effective January 24, 2008, codified at 1 CMC § 8368, amended the employer’s retirement contribution rate. To the extent that these regulations conflict with Public Law 15-126, they are superseded.

 

Public Law 16-36, effective April 15, 2009, amended the priority for payout of employer retirement contributions. To the extent that these regulations conflict with Public Law 16-36, they are superseded.

 

Public Law 17-32, effective February 16, 2011, codified at 1 CMC § 8358, amended the powers of the Board to provide for annual retirement bonuses in place of cost of living increases. To the extent that these regulations conflict with Public Law 17-32, they are superseded.

 

Public Law 17-46, effective June 16, 2011, codified at 1 CMC § 8374, amended the list of acceptable investments for the Fund. To the extent that these regulations conflict with Public Law 17-46, they are superseded.

 

Public Law 17-66, effective December 20, 2011, codified at 1 CMC § 8363(a), amended the Retirement Fund’s life insurance provisions. To the extent that these regulations conflict with Public Law 17-66, they are superseded.

 

Public Law 17-79, effective August 30, 2012, codified at 1 CMC §§ 8481-8489, extended the federal Social Security system to Commonwealth elected officials and employees. To the extent that these regulations conflict with Public Law 17-79, they are superseded.

 

Public Law 18-21, effective October 7, 2013, codified at 1 CMC § 8466, amended the Retirement Fund’s distribution provisions to allow members to withdraw money from their accounts without terminating employment. To the extent that these regulations conflict with Public Law 18-21, they are superseded.

 

Part 001 -       General Provisions

 

§ 110-10-001   Authority

 

Under and by virtue of the authority vested in the Board pursuant to 1 CMC § 8315(f), and section 10 of Public Law 13-60 [comment to 1 CMC § 8253], the Board hereby promulgates the rules and regulations in this chapter.

 

Modified 1 CMC § 3806(f), (d).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

§ 110-10-005   Purpose

 

The Board promulgates the rules and regulations in this chapter to effectively administer and maintain the Fund pursuant to Public Laws 6-17, 6-41, 7-39, 7-40, 8-24, 8-30, 8-31, 8-39, 9-45, 10-88, 11-2, 11-9, 11-95, 11-114, 13-60, 15-13 and 15-70 to update existing regulations, and for other purposes.

 

Modified 1 CMC § 3806(d).

 

History: Amdts Adopted 29 Com. Reg. 26693 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26666 (July 18, 2007); Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: In March 2006, former § 110-10-005 (Definitions) was renumbered to § 110-10-010. The August 2007 amendments added Public Laws 15-13 and 15-70 to this section.

 

§ 110-10-010   Definitions

 

Applicability. The words and terms as used in this chapter shall have the meanings indicated and shall include the plural unless the context clearly indicates otherwise. The definitions herein provided shall supplement the public laws referenced in § 110-10-005.

 

(a)        “Accredited institution of higher learning” means an institution of higher learning that is either:

(1)        Located in the United States of America, its commonwealths, possessions, or territories, that is included on the U.S. Department of Education’s Database of Accredited Postsecondary Institutions and Programs; or

(2)        Located outside the United States of America, its commonwealths, possessions, or territories, but for which an expert recommendation regarding United States Educational Equivalency to an associate’s or bachelor’s degree has been obtained from a credential evaluation service organization that is a member of either the Association of International Credential Evaluators (AICE) or the National Association of Credential Evaluation Services (NACES), provided that:

(i)         the recommendation is sent directly to the NMI Retirement Fund by the expert and arrives in a sealed envelope; and

(ii)        the cost of obtaining such a recommendation is paid by the member applying to receive the Education Service Credit.

 

(b)        “Administrator” means the administrator of the Fund or the acting administrator in the event the administrator is unavailable for duty.

 

(c)        “Annual” means yearly, and refers to the calendar year.

 

(d)       “Annual salary.” The term “annual salary” means:

(1)        For members who were employed before December 5, 2003 (the effective date of Public Law 13-60) and who did not receive a refund of contributions, annual salary shall include base salary, lump sum payment of annual leave, 30% bonus, overtime compensation, hazardous pay, differential pay, and hardship post pay, but not housing allowance or any other type of extra pay where retirement contributions are not deducted and remitted to the Fund. Furthermore, the exceptions in Public Law 6-41 (former 1 CMC § 8313(o)(1)-(2)), shall apply to the definition of salary for members under this subsection.

(2)        For members who became employed on or after December 5, 2003 (the effective date of Public Law 13-60), including persons who were refunded contributions and subsequently became re-employed with the CNMI government on or after the effective date of Public Law 13-60, the definition of “annual salary” in Public Law 13-60 [1 CMC § 8313(o)], shall apply.

(3)        Provided however, that “bonus salary,” as referenced in section 5 of PL 13-60 [1 CMC § 8313(o)], shall include severance pay and any settlement of any claim involving employment or termination of employment. Such payments shall be excluded from the calculation of base salary.

 

(e)        “Calendar year” means the year from January 1 to December 31.

 

(f)        “Child” as used in 1 CMC § 8313(g), the term “child” includes a child adopted pursuant to local custom, provided that the customary adoption is recognized in an order by a court of competent jurisdiction.

 

(g)        “Complete separation from service” or “completely separated from service” means separation from government service by any employee of the government, whose employment has terminated, effective as of the last day of employment, and who has been refunded his or her contributions. A person who completely separates from service and refunds his or her contributions shall be deemed a new member of the Fund upon subsequent employment with the CNMI government.

 

(h)        “Credited service” means prior service and membership service, plus accumulated sick leave.

 

(i)         “Date of retirement” means the date on which the application for retirement is approved by the Fund. The member’s entitlement to annuity payments shall commence on this date.

 

(j)         “Early withdrawal penalty.” The penalty applied to employees hired on or after December 5, 2003 (the effective date of Public Law 13-60), who separate from service and receive a refund of contributions. This amounts to 10% of total contributions, excluding interest earned, which shall be withheld and retained upon issuance of the refund by the Fund.

 

(k)        “Education service” means that period of time when a member attended an accredited institution of higher learning as prescribed by rules and regulations to be promulgated by the Board; provided, that the member must have obtained a degree and that a maximum of two years of service will be earned for a completed associate’s degree and a maximum of four years of service will be earned for a completed bachelor’s degree or higher.

 

(l)         “Fiscal Year” means a twelve month period from October 1 to September 30.

 

(m)       “Government.” The term “government” as used in Public Law 6-17 [1 CMC §§ 8301-8394] means the government of the Commonwealth of the Northern Mariana Islands, which came into existence on or after January 8, 1978 including branches, departments, agencies, instrumentalities, public corporations, municipalities, political subdivisions and the Office of the Washington Representative.

 

(n)        “Interest.” The term “regular interest” in 1 CMC § 8313(n) and elsewhere in these regulations shall mean the following:

(1)        For purposes of refunding contributions, the Fund shall pay three and one half percent (3.5%), compounded annually through September 30, 2011 and from October 1, 2011 the rate shall be set by the Administrator each year based on the average of the rates offered on savings accounts by the banks in the CNMI, and such regular interest shall be credited for each complete year.

(2)        For purposes of a member’s repayment of refunded contributions to the Fund, the interest rate the member shall pay is the higher of the average investment rate of return of the past five most current fiscal years from the date of the application, or the actuarial rate in existence at the time of election.

(3)        For purposes of a member’s payment of retroactive contributions and class difference equivalents for early retirement pursuant to § 110-10-205 herein, the interest shall be 5%.

 

(o)        “Judge of the Commonwealth government” means a judge appointed by the Governor after January 8, 1978, to serve as a judge of the Commonwealth Trial Court, the Superior Court of the Commonwealth, or as a justice of the Supreme Court of the Commonwealth of the Northern Mariana Islands.

 

(p)        “Medical professional.” For purposes of Public Law 11-2 [1 CMC § 8392], this term means an employee of the Department of Public Health who has received a specialized degree or formal training in, and whose occupational title has the primary duty of, the treatment or care of patients’ medical or psychological conditions and who is so certified by the CNMI Medical Professional Licensing Board.

 

(q)        “Member of the legislature” means a person elected to serve in the Northern Marianas Commonwealth Legislature on or after January 8, 1978.

 

(r)        “Membership service” means service rendered on or after becoming a member of the Fund.

 

(s)        “Military service” means that period of time when a member served in the Armed Forces of the United States, including but not limited to the Army, Navy, Air Force, Marine Corps, and Coast Guard.

 

(t)        “Overtime” or “compensatory time.” For purposes of Public Law 8-24 [1 CMC §§ 8333-34], these terms mean the number of hours worked at the same job in excess of 2,080 regular hours per year during any year of membership service, and for which payment was received or compensatory time used, and which have been timely certified by the Director of Finance or the head of the autonomous agency, as the case may be.

 

(u)        “Place of residence.” For purposes of determining where a disability examination shall take place pursuant to 1 CMC § 8347, this term means the island on which the member resides, if in the Commonwealth. If the member lives outside the Commonwealth, this term means within 50 miles of where the member resides, provided there exist in that area suitable medical facilities at which disability examinations can be conducted. If no medical facilities exist within 50 miles of where the member resides, then the Administrator shall designate the nearest medical facility at which disability examinations can be conducted. In any case, where the member resides shall be the last address of record on file with the Fund pursuant to § 110-10-601.

 

(v)        “Prior service” means service rendered prior to becoming a Fund member.

 

(w)       “Re-employment.” Re-employment of a retiree as an employee or a consultant by the CNMI government is limited by both Article III, section 20(c) of the NMI Constitution as well as by 1 CMC § 8392. For purposes of the limitations contained in this chapter, the following definitions will apply:

(1)        “Consultant” or “consultant contract”:

(i)         A consultant is an expert who is called upon for professional or technical advice or opinions. The expertise of a consultant may be based on education, training, experience, or a combination thereof.

(ii)        A consulting contract is an agreement for the services of a consultant for compensation. The work product of a consulting contract is primarily intellectual in character and may include consultation, analysis or recommendation; it does not include the provisions of supplies or materials; and will result in the production of a report or completion of a task.

(iii)       A contract for professional services, such as provided by engineers, accountants, physicians, lawyers and other similar professionals, is not a consulting contract for purposes of 1 CMC § 8392. Such a contract must, however, meet the test for an independent contract set forth in § 110-10-010(w)(3).

(2)        “Employee” or “employment contract”, means any retiree in the service of any entity, office or official of the CNMI government under any appointment or contract of hire without regard to the label of the contract, for wages or its equivalent, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed. Whether a person is an employee requires a factual inquiry that will be determined on a case by case basis. The form or title of the contract or personnel action under which the retiree is hired is not, by itself, determinative of whether the retiree is an employee.

(3)        “Independent contractor” or “independent contract,” means any contract, without regard to the label of the contract, between a retiree and any entity, office or official of the CNMI government to provide professional services, products or deliverables or a retiree who enters into such a contract. In determining whether a person is an independent contractor, a consultant or an employee, the following factors shall be considered:

(i)         The extent or control which, by the agreement, the employer may exercise over the details of the work;

(ii)        Whether or not the one employed is engaged in a distinct occupation or business;

(iii)       The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the employer or by a specialist without supervision;

(iv)       The skill required in the particular occupation;

(v)        Whether the employer or the workman supplies the instrumentalities, tools and the place of work for the person doing the work;

(vi)       The length of time the person is employed;

(vii)      The method of payment whether by the time or by the job;

(viii)     Whether or not the work is part of the regular business of the employer;

(ix)       Whether or not the parties believe they are creating an employer-employee relationship; and

(x)        Whether or not, the same or comparable work has previously been performed by the retiree during any period of employment with the CNMI government. These factors are all examined and no one factor is determinative. (Source: Castro v. Hotel Nikko Saipan, Inc., 4 N.M.I. 268 (1995)).

 

(x)        “Regular hours.” For purposes of the credit granted for overtime and compensatory time pursuant to Public Law 8-24 [1 CMC §§ 8333-34], this term means 2,080 hours per calendar year consisting of the actual hours worked, annual leave taken and paid, sick leave taken and paid or administrative leave taken and paid, and paid legal holidays. This term does not include annual leave paid in lump sum during the years of membership service or on the date of retirement, or any type of leave converted into service credit.

 

(y)        “Teacher.” For purposes of Public Law 8-30 [1 CMC §§ 8401-8405 (repealed by PL 11-114)], this term means an employee who is a certified or non-certified classroom teacher, instructor, or an employee holding such occupational title whose primary duty is to teach students. This term does not include administrative or support personnel, teacher aides, or other professionals whose primary duty is not to teach students.

 

(z)        “Terminated vested member” means either:

(1)        A person who became a member after October 1, 1980, but before April 16, 1998 (the effective date of Public Law 11-9) and whose government employment has terminated with at least 3 years but less than 20 years of membership service and who did not obtain a refund of contributions; or

(2)        A person who became a member on or after April 16, 1998 (the effective date of Public Law 11-9), and whose government employment has terminated with at least 10 years but less than 20 years of membership service and who did not obtain a refund of contributions.

 

(aa)      “Vesting credit” means the sum of credited service, education service and military service, and overtime or compensatory time performed in excess of 2,080 hours, which service shall be deemed creditable for the purpose of determining a member’s eligibility for the additional five years of credited service pursuant to N.M.I. Constitution, Article III, § 20. Vesting service shall only be used to determine whether a member is eligible for benefits and shall not be used to determine the amount of benefits to be paid to a member.

 

(bb)      “Wages” for purposes of determining whether a retiree is receiving compensation from the CNMI government, means the money rate at which the service rendered is recompensed under the contract of hiring, including the reasonable value of board, rent, housing, lodging or similar advantage received from the employer, and gratuities received in the course of employment from other than the employer. This definition of wages does not supplant the definition of “annual salary” for the purposes of calculating benefits under the Retirement Fund Act.

 

(cc)      “Years of Service” means the calendar year(s) or fraction thereof for which service is creditable and used for computation of benefits and eligibility for benefits.

 

(dd)     “Eligible Defined Benefit Plan Member” means a member of the Defined Benefit Plan with less than 10 years of contributing member service who has the option, upon written election, to voluntarily and irrevocably elect to become a member of the Defined Contribution Plan, on a prospective basis, on or after the date selected by the Administrator, which is on or after the effective date of the establishment of the Defined Contribution Plan pursuant to Public Law 15-13, codified at 1 CMC § 8454. This option to elect in writing, to voluntarily and irrevocably become a member of the defined contribution plan, shall expire twelve months after the date selected by the Administrator following the establishment of the Defined Contribution Plan.

 

(ee)      “Date selected by the administrator” means the first date Eligible Defined Benefit Plan Members may elect in writing, to voluntarily and irrevocably become a member of the Defined Contribution Plan and shall be July 25, 2007.

 

(ff)       “July 25, 2007” means the “date selected by the Administrator” and is the first date eligible defined benefit plan members may elect in writing, to voluntarily and irrevocably become a member of the Defined Contribution Plan which same option to elect to become a member of the Defined Contribution Plan shall expire on July 25, 2008.

 

(gg)      “July 25, 2008” means the date wherein eligible defined benefit plan members may elect, voluntarily and irrevocably to become a member of the defined contribution plan which same option to elect to become a member of the defined contribution plan shall expire.

 

(hh)      “Individual’s spouse” means an individual legally married to the eligible defined benefit plan member whose written election to voluntarily and irrevocably become a member of the defined contribution plan is not effective unless this same election is signed by the individual’s spouse.

 

(ii)        “Qualified domestic relations order” means a divorce or dissolution judgment under Commonwealth law, or subject to judicial recognition under Commonwealth law, which includes an order approving a property settlement, and otherwise complies with 1 CMC § 8451(v)(1-8).

 

(jj)        “Employee contribution account balance” means the amount to be transferred from the defined benefit plan into the defined contribution plan on the behalf of the eligible defined benefit plan member and shall include:

(1)        The amount of the employee’s contributions into the Defined Benefit Plan;

(2)        The amount of “regular interest” accrued on these employee contributions as fixed by the Board Resolution pursuant to 1 CMC § 8313(n), to be 7.5% per annum;

(3)        Any amount of matching employer contribution legislatively appropriated for that purpose, subject to the applicability of 26 U.S.C. § 415(c); and

(4)        Less any amounts owed to the Fund for obtaining various types of credit authorized under any applicable law, regulation, or program of the Fund, such as amounts due for Member Home Loan Program, hardship withdrawals, or other obligations to the Fund.

 

Modified 1 CMC § 3806(c), (d), (e), (f), (g).

 

History: Amdts Adopted 34 Com. Reg. 32298 (Feb. 29, 2012); Amdts Proposed 33 Com. Reg. 32094 (Nov. 29, 2011); Amdts Adopted 33 Com. Reg. 32092 (Nov. 29, 2011); Amdts Proposed 33 Com. Reg. 31555 (Apr. 21, 2011); Amdts Adopted 29 Com. Reg. 27943 (Dec. 2007); Amdts Proposed 29 Com. Reg. 27408 (November 19, 2007); Amdts Adopted 29 Com. Reg. 26676 (July 18, 2007); Amdts Proposed 29 Com. Reg. 26561 (June 18, 2007); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 12439 (Sept. 15, 1994); Amdts Proposed 16 Com. Reg. 11874 (May 15, 1994); Amdts Adopted 16 Com. Reg. 12323 (Aug. 15, 1994); Amdts Proposed 16 Com. Reg. 11921 (June 15, 1994); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993); Correction Adopted 15 Com. Reg. 10820 (Sept. 15, 1993); Amdts Adopted 15 Com. Reg. 10571 (Apr. 15, 1993); Amdts Proposed 14 Com. Reg. 10203 (Dec. 15, 1992); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The Commission added an apostrophe to “associates” and “bachelors” in subsection (k) to correct manifest errors. The Commission inserted apostrophes in the words “associate’s” and “bachelor’s” in subsection (a)(2) pursuant to 1 CMC § 3806(g). The Commission inserted the period at the end of the first sentence in subsections (d), (j), (m), (n), (p), (t), (u), (w), (x), and (ii).

 

In subsection (ii), the Commission corrected the citation of “1 CMC § 8451(22)(A-H).” The correct citation for “qualified domestic relations order” is 1 CMC § 8451(v)(1-8).

 

In March 2006, this section was renumbered from § 110-10-005 to § 110-10-010 and was repromulgated with numerous amendments. The July 2007 amendments added subsections (dd) through (jj). The December 2007 amendments amended § 110-10-010(jj)(4).

 

The November 2011 amendments amended subsection (a) and added subsection (a)(2).

 

The February 2012 amendments amended subsection (n).

 

Part 100 -       Membership in Retirement Fund

 

§ 110-10-101   Election of Membership Class

 

A class II member may elect at any time to change to class I membership. Upon election, the member will receive a refund of 2.5% of salary member contribution made to the Fund for a maximum period of twelve months plus regular interest thereon. The election to change membership class is irrevocable. A class I member cannot elect to join class II membership.

 

Modified 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The March 2006 amendments changed the second sentence of this section.

 

§ 110-10-105   Eligibility for Fund Membership

 

(a)        A person whose employment is for a specific project, which will cease upon completion of the project or purpose, shall not be eligible to become a member of the Fund based on that employment. Examples of such a specific project include the census, a constitutional convention, disaster related projects and the like. (1 CMC § 8322).

 

(b)        Part time, seasonal, intermittent or temporary employees who are members whose services are not for a specific project or otherwise not compensated on a fee basis will receive one-twelfth of a year of membership service for every 160 hours for which they are paid in a calendar year, but in no case more than 12 months credit for any calendar year. In the event a person is employed concurrently in another government position, § 110-10-285 of this chapter shall govern.

 

(c)        Independent contractors and persons whose services are compensated on a fee basis are not eligible for membership.

 

Modified 1 CMC § 3806(c), (d), (e), (f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: In March 2006, subsections (a) and (b) were amended, subsection (c) was added and the title of the section was changed.

 

§ 110-10-110   Services to the Saipan Credit Union

 

Services to the Saipan Credit Union prior to January 1, 1990, may be creditable provided the person became an employee of the CNMI government between January 1, 1990, and February 13, 1995 (the effective date of Public Law 9-27). The required contributions shall first be paid by the employee and by the CNMI government at the prevailing employee’s and employer’s rate at the time and class of membership at enrollment date. The employee must elect to be credited for such prior service within 30 days of the effective date of first employment with the CNMI government between January 1, 1990, and December 4, 2003. Failure to so elect will be deemed an irrevocable rejection of the credit.

 

Modified 1 CMC § 3806(f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The March 2006 amendments, among other changes, added the February 13, 1995 limitation.

 

§ 110-10-115   Elected Members of Local Municipal Council

 

Prior service credit may be allowed for members who have rendered service to a municipal council prior to January 9, 1978, as follows:

 

(a)        The person became an employee of the CNMI government before December 5, 2003 (the effective date of Public Law 13-60) and did not refund contributions.

 

(b)        If the member was a full-time government employee at the same time of service to a local municipal council, no credit for council service will be granted.

 

(c)        If the member was not a government employee at the time of service to a local municipal council, the member may receive service credit for every full year served with the council. No credit shall be granted for partial year of service. For example, a member who served three years and 364 days for a local municipal council and was not at the same time a full-time government employee may receive credit for 3 years, but not the 364 days, regardless of how close to one year the partial year is.

 

(d)       Members who qualify for prior service credit for service to any local municipal council must elect to receive the credit by November 4, 1989 (within 180 days of the effective date of Public Law 6-17) or 30 days from the first date of hire, whichever is later. Failure to timely apply for the prior service credit shall be deemed an irrevocable rejection of the credits.

 

Modified 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The 2006 amendments changed the title of this section and added subsection (a) among the other amendments to this section.

 

§ 110-10-120   Education Service Credit

 

Vesting service credit shall be granted upon election by the member on a form prescribed by the Board of Trustees under the following terms and conditions:

 

(a)        The person became a government employee and Fund member before December 5, 2003 (the effective date of Public Law 13-60). The education service credit is not available for any person who becomes a member on or after December 5, 2003, including those persons who have been refunded contributions and subsequently become a new government employee on or after December 5, 2003. For example, a person who became a member on August 1, 1997, terminated employment on December 31, 1999, was refunded contributions, and re-employed with the CNMI government on August 1, 2005, is not eligible for the education service credit.

 

(b)        The member must submit an original diploma or degree from an accredited institution of higher learning. The original will be returned to the member after the Fund has made a copy. A member is not entitled to more vesting service credit by virtue of having two or more associate or higher degrees. The total maximum vesting service credits available under this section is four years. The member is entitled to a maximum of two years of education vesting service credit for having one or more associate degrees, or a maximum of four years of education vesting service credit for having one or more bachelor’s or higher degrees.

(1)        For an associate degree, vesting service credit shall be granted for a maximum of two years. A member with credited service of five years or more and who has contributed not less than three years as a member may receive one year of education vesting service credit. A member who has credited and contributing service of at least five years may receive two years of education vesting service. For example, a member with credited service of five years, but only two years of contributing service, is not entitled to any education vesting service credit. If that same member remains employed and contributes to the Fund for at least three more years, the member may be eligible for two years of education vesting service for an associate degree.

(2)        For a bachelor’s, master’s or higher degree, the member shall be granted a maximum of four years of education vesting service credit. A member with credited service of five years or more and who has contributed not less than three years may receive two years of education service credit. A member with at least five years of credited and contributing service may receive three years of education vesting service credit. A member with more than ten years of credited service, regardless of the member’s number of years of contributing service, may receive four years of education vesting credit.

 

(c)        The member must arrange for the accredited educational institution to send directly to the Fund an official, sealed transcript indicating completion of studies for a degree or degrees.

 

(d)       To be eligible for education vesting service credits, the member must elect in writing on a prescribed form at any time prior to retirement.

 

Modified 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: This section was formerly § 110-10-130 before 2006. The March 2006 amendments made numerous changes to this section and repealed sections § 110-10-120, Prior Service for Class II Members, and § 110-10-125, Certification of Service. The remaining sections in this part have been re-designated accordingly.

 

§ 110-10-125   Military Service Credit

 

Vesting service credit for active military service shall be granted upon election by the member under the following terms and conditions:

 

(a)        The person became a government employee and Fund member before December 5, 2003, the effective date of Public Law 13-60. The military service credit is not available for any person who became a member on or after the effective date of Public Law 13-60, including those persons who completely separated from government service and have been refunded contributions.

(1)        Example 1: A person became an employee on January 1, 1996, and completely separated from government service on January 1, 1997, without having applied for the military service credit. The person was refunded contributions and subsequently returned to government service on August 1, 2005. Although that person first became a member on January 1, 1996, before the effective date of Public Law 13-60, the person ceased becoming a member upon completely separating from government service on January 1, 1997, and refunding contributions. The person became a new member on August 1, 2005, after the effective date of Public Law 13-60 (December 5, 2003), and is not eligible for the military service credit.

(2)        Example 2: Same facts as example 1 [§ 110-10-125(a)(1)], except that the person did not refund contributions upon leaving government service. The person remained a member from January 1, 1997, through the re-employment date of August 1, 2005. Accordingly, the person is eligible for the military service credit.

(3)        Example 3: The person first became a member on August 1, 2005. This person is not eligible for the military service credit.

 

(b)        A maximum of two years vesting service credit shall be granted for active service in the Armed Forces of the United States.

(1)        If the member has at least three years but less than five years of credited service, one year of military vesting service shall be granted.

(i)         Example 1: A member with three years of credited service and six months of military service with an honorable discharge may receive six months of military service credit.

(ii)        Example 2: A member with three years of credited service and two and one-half years of military service with an honorable discharge may receive one year of military service credit.

(iii)       Example 3: Same facts as example 1 (three years of credited service and six months of military service with honorable discharge) [§ 110-10-125(b)(1)(i)], but after ten years on reserve status, the member is called to active service for another two years. The member has a total of two and one-half years of active service, one year of which may be creditable. The ten years on reserve status is not creditable.

(iv)       Example 4: Same facts as example 1 [§ 110-10-125(b)(1)(i)], but the person became a new member on August 1, 2005, after the effective date of Public Law 13-60 (December 5, 2003). The member is not eligible for the military service credit.

(2)        If a member has more than five years of credited service, two years of military vesting service may be granted.

(i)         Example 1: A member with seven years of credited service and six months of military service with an honorable discharge may receive six months of military service credit.

(ii)        Example 2: A member with seven years of credited service and two and one-half years of military service with an honorable discharge may receive two years of military service credit.

(iii)       Example 3: Same facts as example 1 [§ 110-10-125(b)(2)(i)], but after ten years on reserve status, the member is called to active service for another two years. The member has a total of two and one-half years of active service, two years of which may be creditable. The ten years on reserve status are not creditable.

(iv)       Example 4: Same facts as example 1 [§ 110-10-125(b)(2)(i)], but the person became a new member on August 1, 2005, after the effective date of Public Law 13-60 (December 5, 2003). The member is not eligible for the military service credit.

 

(c)        To be eligible for military vesting service credit, the member must elect in writing on a form prescribed by the Board of Trustees and submit such election to the Fund together with authenticated documentation, such as Form DD 14, from the Armed Forces showing the beginning date of service and the date of an honorable discharge.

 

(d)       To be eligible for military vesting service credit, the member must make the election before retiring.

 

(e)        A member who was honorably discharged for medical reasons from the Armed Forces of the United States may be eligible to receive vesting service credit for up to two years provided the other requirements in this section are satisfied.

 

Modified 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The Commission designated the subparts of (a), (b)(1), and (b)(2), which were not designated in the original. This section was formerly § 110-10-135 before 2006. The March 2006 amendments made numerous changes to this section and repealed sections § 110-10-120, Prior Service for Class II Members, and § 110-10-125, Certification of Service. The remaining sections in this part have been re-designated accordingly.

 

§ 110-10-130   Applicability of the 5 Year Credit Pursuant to Constitutional Amendment No. 19 and Limitation Re-employment and Double Dipping

 

(a)        In accordance with Constitutional Amendment 19, a member is eligible to retire and to receive an additional five years membership credit under the following circumstances:

(1)        The member has been on active government service on or after January 7, 1986; and

(2)        The member has acquired not less than 20 years of membership service credits under the NMI Retirement Fund system; and

(3)        The member has made an election to retire under this provision in writing, on a form prescribed by the Board of Trustees, at the time of application for retirement. Such an election is irrevocable once made.

(4)        A member who elects to retire under this section may not be reemployed by the Commonwealth government or any of its instrumentalities or agencies, for more than 60 days in any fiscal year without losing his or her retirement benefits for the remainder of that fiscal year. (Constitutional Amendment No. 19).

(5)        Provided, however, that retirees are allowed to return to government employment as classroom teachers, doctors, nurses and other medical professionals for a period not to exceed two years without losing their retirement benefits. (1 CMC § 8392(d)).

 

(b)        An employee who has retired under age retirement or an employee who has retired upon acquiring 20 years or more of membership service under the NMI Retirement Fund system before January 7, 1986, is not eligible to receive an additional five years of credit if the employee is subsequently employed by the CNMI government on or after January 7, 1986.

 

Modified 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: This section was formerly entitled “Education Service Credit” (§ 110-10-130). This section was § 110-10-140 before the 2006 amendments. In March 2006, numerous amendments were made to this section and the title of the section was changed.

 

§ 110-10-135   Membership Status Upon Subsequent Employment

 

A person who has completely separated from service and received a refund of contributions shall, upon subsequent employment with the CNMI government, be deemed a new member of the Fund.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The March 2006 amendments added this section. This section was formerly entitled “Military Service Credit” (§ 110-10-125).

 

§ 110-10-140   Re-employment and Double Dipping

 

(a)        Retirees may not return to government service and continue to receive retirement annuities during their return to service except under the following conditions:

(1)        Employment Contract. A retiree under an employment contract must fall within one of the exemptions for re-employment enumerated under 1 CMC § 8392(a)(1)-(3), or (5). Doctors, nurses, other medical professionals, and classroom teachers may receive retirement annuities for a maximum of two years, after which the annuities must be ceased. Retirees employed with the CNMI government under the Older Americans Act may receive retirement annuities indefinitely during such employment. All other retirees may not be re-employed with the CNMI government unless they fall within an exemption enumerated under 1 CMC § 8392(a)(1)-(3), or (5), but during the time of employment retirement annuities will be limited to sixty days per fiscal year, provided that the retiree elected to take advantage of the five extra years service credit granted by Amendment 19. After the sixty days, such retiree may continue to receive compensation under the employment contract, but must relinquish and shall not be eligible to receive his retirement annuity for the balance of the fiscal year.

(2)        Consulting Contract. A retiree under a consulting contract must fall within one of the exemptions for re-employment enumerated under 1 CMC § 8392(a)(1)-(3), or (5). Such a retiree is limited to receive both compensation under the contract and retirement annuities for sixty days per fiscal year, provided that the retiree elected to take advantage of the five extra years service credit granted by Amendment 19. After the sixty days, such retiree may continue to receive compensation under the consulting contract, but must relinquish and shall not be eligible to receive his retirement annuity for the balance of the fiscal year.

(3)        Independent Contract. If the contract calls for professional services, products or deliverables and comports with § 110-10-010(w)(3), the retiree may continue to receive retirement annuities as well as compensation under the contract during the term of the contract.

 

(b)        Duty to Disclose Re-employment. Within 30 days of either the execution of any form of employment contract with the CNMI government by the retiree, or the effective date of a request for personnel action by the CNMI government, the retiree has the duty to disclose the re-employment to the Fund. Such disclosure shall be in writing on a form prescribed by the Board of Trustees and shall include a copy of the document that is the basis for the re-hiring. Failure to comply with this subsection shall constitute grounds for terminating retirement benefits.

 

(c)        Retirees who do not meet any of the conditions in § 110-10-140(a) may not return to government service.

 

Modified 1 CMC § 3806(e), (f).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The 2006 amendments added this section. This section was formerly entitled “Applicability of the 5 Year Credit Pursuant to Constitutional Amendment No. 19” (§ 110-10-130).

 

Part 200 -       Benefits

 

§ 110-10-201   Normal Retirement Benefits for Class I Members

 

(a)        Employees of the CNMI government who were hired prior to April 16, 1998 (the effective date of Public Law 11-9) may retire on a service retirement annuity, provided they are at least 62 years of age, have three years of contributing membership service from May 7, 1989 and have not withdrawn their contributions. (PL 6-17).

 

(b)        Employees of the CNMI government who were hired after October 1, 1980, but prior to May 7, 1989 and who were 60 years of age or older on date of hire may retire, provided they have three years of credited prior service and have not withdrawn their contributions. (PL 6-17).

 

(c)        Employees of the CNMI government who were hired on or after April 16, 1998 (the effective date of Public Law 11-9) may retire on a service retirement annuity, provided they are at least 62 years of age with 10 years of contributing membership service from May 7, 1989, and have not withdrawn their contributions. (PL 11-9).

 

Modified 1 CMC § 3806(f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 7661 (Mar. 15, 1991); Amdts Proposed 12 Com. Reg. 7446 (Nov. 15, 1990); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The Commission inserted the final periods at the end of subsections (a)-(c). The original subsection (a)(3) contained a reference to “Section 2.01(P)(3),” which does not exist. The Commission inserted the correct NMIAC section (§ 110-10-010(w)(3)) regarding independent contracts. In March 2006, this section was repromulgated with numerous amendments.

 

§ 110-10-205   Early Retirement Benefits for Class I Members, Post PL 15-70 (effective date June 14, 2007)

 

A class I member may elect to take early retirement under the following terms and conditions:

 

(a)        A person who became a class I member before April 16, 1998 (the effective date of Public Law 11-9) must be at least 52 years of age with 10 years of vesting service or be under 62 years of age with at least 25 years of vesting service, provided that the member has at least three years of credited service earned after May 7, 1989, and further provided that that person elected to take early retirement prior to June 14, 2007. Those who elect to take early retirement after June 14, 2007 will have until June 14, 2012 to retire under the transition provisions of PL 15-70 (lump-sum contribution, etc.). Those members who take early retirement after June 14, 2012, will receive an annuity reduced by the actuarially determined amount of 3% for each year or pro rata for a partial year that the member is under 62 years of age.

 

(b)        A person who became a class I member on or after April 16, 1998, must be at least 52 years of age with 10 years of membership service or be under 62 years of age with at least 25 years of membership service, provided that the member has at least 10 years of membership service earned after May 7, 1989, and further provided that that person elected to take early retirement prior to June 14, 2007. Those who elect to take early retirement after June 14, 2007 will have until June, 14, 2012 to retire under the transition provisions of PL 15-70. Those members who take early retirement after June 14, 2012, will receive an annuity reduced by the actuarially determined amount of 3% for each year or pro rata for a partial year that the member is under 62 years of age.

 

(c)        A person eligible to take early retirement under §§ 110-10-205(a) or (b), prior to June 14, 2012 and who so elects, may pay to the Fund, prior to retirement, a lump sum amount equivalent to the difference between class I and class II contributions, including regular interest, for all periods in which the member was required to make contributions until the date of retirement. Such payment does not constitute conversion from class I to class II; rather, it entitles the member to receive an annuity equivalent to the full amount the member would have been entitled to receive at age 62. No payment of such lump sum amount shall be allowed by installment or by deduction from the member’s annuity. Provided, however, a person who became a member prior to 12/5/2003, may elect to have his/her benefits reduced by 3% for every year or fraction thereof that the member is under age 62.

 

(d)       At any time prior to early retirement, a person who is actively employed with the CNMI government, may elect to pay to the Fund the difference between class I and class II contributions, including regular interest, for all periods in which the member was required to make contributions until the date of election. Such payment shall be made in full, prior to retirement, in a lump sum. Such payment does not constitute conversion from class I to class II; rather, it entitles the member, upon early retirement, to receive an annuity equivalent to the full amount the member would have been entitled to receive at age 62. After such election, the member shall be deducted the applicable contribution rate of a class II member until the date of retirement.+++* An election under this paragraph is irrevocable.

 

(e)        A terminated vested member is not eligible to receive early retirement benefits under 1 CMC § 8342. Accordingly, a person seeking to receive early retirement benefits must file the required documents and application with the Fund before officially separating from government service. No applications for early retirement will be considered if the person already has terminated employment with the CNMI government without first having filed the required application and documents.

 

* So in original. See Commission Comment.

 

Modified 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 34 Com. Reg. 32298 (Feb. 29, 2012); Amdts Proposed 33 Com. Reg. 32094 (Nov. 29, 2011); Amdts Adopted 31 Com. Reg. 29980 (Dec. 22, 2009); Amdts Proposed 31 Com. Reg. 29940 (Oct. 29, 2009); Amdts Adopted 29 Com. Reg. 26693 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26666 (July 18, 2007); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 12439 (Sept. 15, 1994); Amdts Proposed 16 Com. Reg. 11874 (May 15, 1994); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The February 1994 amendments repealed former § 4.3, entitled “Re-employment and Double Dipping.” See 16 Com. Reg. at 11702 (Feb. 15, 1994). The September 1994 amendments added a new subsection (d).

 

The March 2006 amendments re-promulgated this section with numerous changes. The August 2007 amendments changed subsections (a), (b), and (d) and the title of this section.

 

The February 2012 amendments amended subsections (a), (b), and (c).

 

The site marked with three crosses is the former site of a note. The crosses appeared in the 2012 version of the regulation, but the note did not. The note cross-referenced 1 CMC § 8361(b).

 

§ 110-10-210   Normal Retirement Benefits for Class II Members

 

Normal retirement benefits for class II members shall be in accordance with standards and procedures set forth in 1 CMC §§ 8343 and 8344.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The March 2006 amendments added this section. This section was formerly entitled “Disability Benefit” (§ 110-10-220).

 

§ 110-10-215   Early Retirement Benefits for Class II Members

 

Early retirement benefits for class II members shall be in accordance with standards and procedures set forth in 1 CMC §§ 8321, 8342 and 8354.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The March 2006 amendments added this section. This section was formerly entitled “Option for Unmarried Employees; Class II Members” (§ 110-10-230).

 

§ 110-10-220   Disability Benefits

 

(a)        Any member who becomes disabled from an occupational cause and qualifies for disability benefits will have his or her benefits computed at 50 percent of the salary earned at the time the disability was incurred, except that a person who is found by the Board to be disabled shall receive the amount of salary applicable according to the law in place at the time the Board finds the disability. Provided however, that any disabled class I member, who is otherwise eligible to retire on a normal or service retirement, shall not receive a retirement annuity but rather shall receive disability benefits in an amount no greater than the retirement annuity to which they would have been otherwise entitled.

 

(b)        If the disability continues until the member reaches 62 years of age or if the disability commences after the member reaches age 62 years of age, the benefits shall be based on the normal retirement for class I members or the greater of the normal retirement or disability benefits for class II members. (1 CMC § 8345(b)).

 

(c)        A member applying for non-occupational disability benefits (active members totally and permanently disabled while off-duty) must meet the following additional requirements:

(1)        A person who became a member before December 5, 2003 (the effective date of Public Law 13-60), and did not refund contributions must have at least eighteen months of membership service.

(2)        A person who became a member on or after December 5, 2003 (the effective date of Public Law 13-60), including those persons who were refunded contributions and who subsequently became re-employed with the CNMI government on or after the effective date of Public Law 13-60 must have at least five years of membership service.

 

(d)       Investigation, Records, and Other Information

(1)        In accordance with 1 CMC § 8347, the Administrator shall have the right to investigate the member’s disability and submit any information gathered from an investigation to a licensed physician or a specialist to determine a member’s initial or continuing entitlement to a disability annuity.

(2)        The member shall be required to undergo reasonable examination by two licensed and practicing physicians selected by the Board, at least one of whom is a specialist in the area of the disability being examined.

(3)        The member shall be required to provide medical records, other medical information, employment information, financial information and any other information reasonably requested by the Administrator.

(4)        The member, any current employer, and any former employer is required to provide the job description, job duties, essential functions, job site conditions, possible accommodation, payroll records, attendance records, return-to-work information, and any other employment related information reasonably requested by the Administrator.

 

(e)        If any examination indicates that the disability annuitant is no longer physically or mentally incapacitated for service, or that the disability annuitant is engaged in or is able to engage in a gainful occupation, payment of the disability annuity by the Fund shall be discontinued.

 

(f)        If the Administrator determines that the disability annuitant received any amount from the United States Social Security system, any worker’s compensation insurance program, or any insurance or other program covering the annuitant’s disability, the Administrator shall reduce the amount of the disability annuity by an amount equal to any sum the annuitant is entitled to from any other disability program.

(1)        In order to substantiate that the disability annuitant did not receive any amount from other disability programs, the member must submit, within thirty days of the annual Commonwealth or federal deadline (or applicable extended deadline) for filing tax returns, a certified copy of his or her latest income tax returns, including W-2 forms, schedules and other supporting documents.

 

(g)        Failure to undergo a reasonable examination or re-examination, failure to cooperate with the examiner or the Administrator, or failure to provide any requested information under this section § 110-10-220 may cause the application to be cancelled and any payment, if started, to cease.

 

Modified 1 CMC § 3806(c), (e), (f).

 

History: Amdts Adopted 31 Com. Reg. 29980 (Dec. 22, 2009); Amdts Proposed 31 Com. Reg. 29940 (Oct. 29, 2009); Amdts Adopted 31 Com. Reg. 29205 (Feb. 25, 2009); Amdts Proposed 30 Com. Reg. 28984 (Dec. 22, 2008); Amdts Adopted 30 Com. Reg. 28527 (Jun. 27, 2008); Amdts Proposed 30 Com. Reg. 28507 (May 27, 2008); Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The Commission inserted the close parenthesis and period at the end of subsection (b). This section, “Disability Benefit,” was amended and re-designated from § 110-10-210 by the March 2006 amendments. This section was formerly entitled “Survivors Benefits for Children” (§ 110-10-250).

 

The 2008 amendments amended subsection (a). The February 2009 amendments amended subsection (d). The December 2009 amendments amended subsection (c).

 

§ 110-10-222   Disability Benefits Policy and Procedure

 

(a)        Policy

(1)        All full-time defined benefit plan members (“regular employees”) disabled from an occupational cause are eligible for consideration for disability benefits. All regular employees allegedly disabled from a non-occupational cause who had been a member prior to December 5, 2003 with more than 18 months of membership service and who did not refund their contributions are eligible for consideration of non-occupational disability benefits. All regular employees allegedly disabled from a non-occupational cause who became a member after December 5, 2003 with more than five years of membership service and who did not refund their contributions are eligible for consideration for non-occupational disability benefits. Disability benefits shall be based on applicable law at the time of a Board finding of disability, pursuant to 1 CMC ' 8347.

(2)        Benefits are available only to a regular employee who is under a duly licensed physician’s care, and as certified by the Board of Trustees. The Board of Trustees shall certify a list of physicians and specialists. The physicians to certify the starting, continuing, and ending dates of the employee’s disability on the disability certificate form may not be the applicant’s primary care physician*. The physicians, one of whom is a specialist in the area of the disability being evaluated must also, certify, with limited exception, that the member is totally and permanently disabled for the further performance of the duties of any assigned position in the service of the government. The Administrator retains authority to prescribe applicable forms for disability applicants and to further request information/medical reports.

(3)        Reconfirmation of disability by the certifying physicians and specialists will be required by the Fund annually for a five year period, and once for every following three year period, unless a certified physician or specialist in the hemodialysis field certifies the applicant is diagnosed with end stage renal disease with permanent hemodialysis as the only treatment plan.

(4)        Following five years of continuous disability, an assessment will be made to see if the employee qualifies for disability benefits as a long-term disability applicant. In the event the qualification for long term disability is met, a reconfirmation of the disability by the certifying physicians and (one of who is a specialist)* will be required by the Fund once for every following three year period, with limited exceptions as noted, supra, which may be elaborated based on Board resolution.

(5)        Under no circumstances will the combined benefits from a disability plan or the disability program exceed the highest salary received by the member prior to the Board finding of disability.

 

(b)        Responsibilities

(1)        The member is responsible for completing his/her section of the disability certification form and for obtaining the necessary information from the certifying physicians one of whom is a specialist. These certifying physicians and specialists must certify the nature, extent of the illness or injury and projected duration of the disability on the disability certification form.

(2)        The member is responsible for completing the annual certification of disability during the first five years of the disability period. In the event the member is certified as a long-term disability annuitant, the member is responsible for complying with the certification process once every following three year period. The certifying physicians and/or specialists must also certify the nature, extent of illness or injury during each following three year period of the member’s disability on disability certification forms.

 

(c)        Procedures

(1)        The member obtains applicable physicians’ statements (disability certification forms), certifying the nature, extent and duration of illness/disability and forwards it to the Administrator or the Administrator’s designee, for initial review and compliance, and accompanies these forms with certification from a specialist in the area of the disability, unless the Board makes a finding of in extremis or grave and exceptional circumstances.

(i)         The physician must fill out the form by printing the information if it cannot be typed, to include height, weight and blood pressure of the patient. Submissions that are illegible or incomplete will be returned to the patient who has the obligation to see that the information is supplied in satisfactory format. The employee then obtains the certification of a specialist in the area of the disability pursuant to applicable law.

(ii)        The physician must sign a disclaimer that if the information provided is knowingly false or misleading, in an attempt to defraud the CNMI government, they may be guilty of a misdemeanor under applicable Commonwealth or federal law.

(iii)       The member applying for disability on the basis of end stage renal disease that will be starting on hemodialysis must submit a treatment plan from an attending physician with a certification as a specialist or work assignment in the hemodialysis unit.

(iv)       If the disability is related to a disease that required surgery, or was caused as a complication of surgery, the operative report must be submitted along with the application form.

(v)        If the diagnosis related to the primary disability required hospitalization, a copy of the discharge summary must accompany the application form.

(vi)       The primary diagnosis must be assigned an ICD-9 code. The ICD-9 code of any secondary diagnosis that impacts upon the extent or duration of the patient’s disability must be included. The Board reserves the policy decision to update ICD codes in the future.

(vii)      If the condition(s) causing the disability require standard radiologic examination (X-ray) or imaging examinations (CT scan, Magnetic Resonance Imaging, ultrasound, echocardiography, angiography, bone density scans, etc.) or any other examination modality, a copy of those reports must accompany the initial application for disability.

(viii)     Disability upon a psychiatric diagnosis must include an evaluation by a licensed and board certified psychiatrist or licensed clinical psychologist with specialized training/certification in the disability asserted.

(ix)       Disability related to physical limitations must be documented by an evaluation by the vocational rehabilitation counselor or an occupational therapist and/or licensed physical therapist.

(x)        Disability related to malignant disease must be accompanied by a pathology report if any surgery or biopsies were used to establish the diagnosis.

(xi)       Presumptive disability such as sudden blindness, bilateral amputations, major organ transplant (e.g., heart/lung), severe burns over 70% of the body, etc. must be accompanied by medical records justifying such presumptive disability, and/or grave and exceptional circumstances.

(2)        The Administrator, the Benefits Branch Director, or the Administrator’s designee, reviews the documentation and may request additional information or request additional medical reports from the applicable physician to confirm illness/disability before forwarding this information to the Board for its review and/or approval or disapproval.

(3)        The Administrator, the Benefits Branch Director, or the Administrator’s designee, in the event the Board makes a finding of disability, initiates a status change form authorizing short-term disability benefits, and obtains the applicant’s signature on it.

(4)        The Administrator, the Benefits Branch Director, or the Administrator’s designee, estimates the benefit amount the employee is expected to receive from the short-term disability annually during the five-year period of the short-term disability.

(5)        The Administrator, the Benefits Branch Director, or the Administrator’s designee, may terminate the short-term disability benefits when the member’s illness/disability prognosis improves, or at the end of the initial five-year period unless a duly licensed physician or specialist in nephrology certifies the applicant is diagnosed with end stage renal disease requires chronic hemodialysis as the only treatment plan for their disease.* Other diagnoses by a duly licensed physician or specialist of terminal conditions such as terminal cancer or diseases like cystic fibrosis, myasthenia gravis, etc. may be considered a permanently disabling condition/disease.

(6)        The member obtains applicable physician’s statements (disability certification form), certifying nature, extent and duration of a long term illness/disability and forwards it to the Administrator or the Benefits Branch Director, or the Administrator’s designee, for initial review and compliance with long-term disability benefits.

(7)        The Administrator, the Benefits Branch Director, or the Administrator’s designee, reviews the documentation and may request additional information or request additional medical reports from the applicable physician to confirm illness/disability before forwarding this information to the Board for its review and approval or disapproval.

(8)        The Administrator, the Benefits Branch Director, or the Administrator’s designee, in the event the Board makes a finding of long-term disability, initiates a status change form authorizing long-term disability benefits, and obtains the applicant’s signature.

(9)        The Administrator, the Benefits Branch Director, or the Administrator’s designee, estimate the annual benefit amount expected to be received from long-term disability.

(10)      The Administrator forwards this estimated annual long-term disability annuity form to the Board for its review and approval and certification of expenditure of funds.

 

*So in original.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Adopted 31 Com. Reg. 29205 (February 25, 2009); Proposed 30 Com. Reg. 28984 (December 22, 2008); Adopted 30 Com. Reg. 28890 (Oct. 25, 2008); Emergency Proposed 30 Com. Reg. 28535 (Jul. 28, 2008) (effective for 120 days from July 23, 2008).

 

§ 110-10-225   Service Credit and Other Benefits for Certain Government Officials

 

(a)        A person who served the CNMI government as governor, lieutenant governor, judge of the Commonwealth government, mayor, member of the legislature, or resident representative to the United States, shall receive an additional three percent times average annual salary times years of service in such capacity. The 3% bonus is available under the following terms and conditions:

(1)        The person became a member before December 5, 2003 (the effective date of Public Law 13-60), and

(2)        The person did not refund his or her contributions.

(3)        The recomputation will be performed at the time of retirement and will increase the benefit by 3% per year for every year served in such capacity. The additional benefit shall be effective on May 7, 1989 (the effective date of Public Law 6-17), but shall not be retroactive to the date of retirement, if earlier than May 7, 1989.

(4)        Such additional credit may not increase the annuity payable to more than 100 percent of the highest annual salary received.

 

(b)        The same benefits shall accrue to former members of the Marianas District Legislature whose service was rendered prior to January 8, 1978; provided, however that these benefits shall not be retroactive but be computed forward from January 19, 1990; and

(1)        A person who served as a member of the Marianas District Legislature before April 1, 1975 may be credited 60 calendar day per year of service.

(2)        A person who served as a member of the Marianas District Legislature on or after April 1, 1975 may receive credit for full-time employment.

 

(c)        Only those persons who served as a member of a board or commission for at least ten years before December 5, 2003 (the effective date of Public Law 13-60) and did not refund contributions are eligible to receive an annuity pursuant to former 1 CMC § 8341(f).

 

Modified 1 CMC § 3806(f), (g).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The Commission inserted “who” between “person” and “served” to correct a manifest error. This section was added by the 2006 amendments. The former section, “Death After Separation; Contributions on Account,” was repealed by the 2006 amendments.

 

§ 110-10-230   Option for Unmarried Employees — Class II Members

 

(a)        Should any member be unmarried on the date of retirement, and designate an individual as a beneficiary pursuant to 1 CMC § 8352(d), and subsequently marry, the prior designation will be deemed null and void.

 

(b)        Any individual designated by a member pursuant to 1 CMC § 8352(d) shall be entitled to an annuity equal to that of a surviving spouse for class II members, except as provided in subsection (a).

 

Modified 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: In 2006, this section was amended and re-designated from § 110-10-215 to § 110-10-230. This section was formerly entitled “Designation of Payee on Behalf of Recipient of Retirement Benefits” (§ 110-10-265).

 

§ 110-10-235   Refund of Contribution

 

(a)        Upon complete separation from government service, a member eligible for refund of contributions shall receive both contributions and interest thereon after submission of an application for refund. A member who became employed on or after December 5, 2003 (the effective date of Public Law 13-60), shall be subject to a 10% early withdrawal penalty on total contributions, excluding interest. Computation of interest and any deduction, if applicable, shall be calculated according to the fiscal year, as of the close of each fiscal year (October 1 to September 30), using 365 days per year. Examples in computing interest and deductions, where applicable, are provided below.

(1)        Example l: Member started working for the CNMI government on June 1, 1995, and started contributing to the Fund beginning pay-period June 29, 1995. As of the closing of the fiscal year, September 30, 1995, Member had contributed $1,000. Member stopped working on January 31, 1996. From October 1, 1995, to January 31, 1996, Member contributed $500. Member submitted a refund application on February 2, 1996. The total amount to be refunded is computed in the following way:

 

1995 Contribution

$1,000.00

For Fiscal Year 1995 Interest ($1000 x 3.5%)

35.00

Total Accumulated Contribution/Interest as of 9/30/95

$1,035.00

1996 Contribution

500.00

Total Amount to Be Refunded

$1,535.00

 

No interest is given for 1996 because member applied for a refund before the close of the fiscal year.

 

(2)        Example 2: The same facts as example 1 [§ 110-10-235(a)(1)], except that member did not request a refund until December 31, 1996. Member’s total refund amount is computed as follows:

 

1995 Contribution

$1,000.00

For Fiscal Year 1995 Interest ($1000 x 3.5%)

35.00

Total Accumulated Contribution/Interest as of 9/30/95

$1,035.00

1996 Contribution

500.00

For Fiscal Year 1996 Interest ($1535 x 3.5%)

53.73

Total Accumulated Contribution/Interest as of 9/30/96

$1,588.73

Total Amount to Be Refunded

$1,588.73

 

(3)        Example 3: The same facts as example 2 [§ 110-10-235(a)(2)], except that the person returns to government employment after refunding contributions and after the effective date of Public Law 13-60. Member started working for the CNMI government on June 1, 2005, and started contributing to the Fund beginning pay-period June 29, 2005. As of the close of the fiscal year, September 30, 2005, member had contributed $1,000. Member stopped working on January 31, 2006. From October 1, 2005, to January 31, 2006, member contributed $500. Member submitted a refund application on February 2, 2006. Note that the results will be the same if the member did not have the prior government employment and became a member on or after the effective date of Public Law 13-60. The total amount to be refunded is computed in the following way:

 

2005 Contribution

$1,000.00

For Fiscal Year 2005 Interest ($1,000 x 3.5%)

35.00

Deduction of 10% ($1,000 x 10%)

(100.00)

Total Accumulated Contribution/Interest as of 9/30/05

$935.00

2006 Contribution

500.00

For Fiscal Year 2006 Interest ($1,435 x 3.5%)

50.23

Deduction of 10% ($500 x 10%)

(50.00)

Total Accumulated Contribution/Interest as of 9/30/06

$1,435.23

Total Amount to Be Refunded

$1,435.23

 

(4)        Example 4: Member started working for the CNMI government on June 1, 2003, and started contributing to the Fund beginning pay-period June 29, 2003. As of the close of the fiscal year, September 30, 2003, member had contributed $1,000. Member stopped working on January 31, 2004. From October 1, 2003, to January 31, 2004, member contributed $500. The result is similar to example 1 [§ 110-10-235(a)(1)] because the member became an employee before the effective date of Public Law 13-60 and did not previously refund contributions.

 

2003 Contribution

$1,000.00

For Fiscal Year 2003 Interest ($1,000 x 3.5%)

35.00

Total Accumulated Contribution/Interest as of 9/30/03

$1,035.00

2004 Contribution

500.00

Total Amount to Be Refunded

$1,535.00

 

 

(b)        A member who receives a refund of contributions gives up all rights and benefits accorded to that member under the Retirement Fund Act. Accordingly, upon re-employment with the CNMI government on or after the effective date of Public Law 13-60, the member shall be deemed a class I member and subject to Public Law 13-60, regardless of the member’s status before refunding contributions. A member who receives a refund of contributions and returns to government employment before the effective date of Public Law 13-60 is subject to the applicable laws and rules and regulations in force at the time of the member’s re-employment.

 

(c)        Regardless of class membership, a member shall be restricted from government re-employment for a period of six months after receiving a refund of his or her contributions, unless the member repays to the Fund the full amount of the refund plus regular interest, prior to returning to government service.

 

(d)       Upon timely and full repayment of the refund and regular interest, the Fund shall recognize the membership service represented by the refunded amount.

 

(e)        In accordance with 1 CMC § 8356(b)(3), the Board may, in its discretion, regardless of cause, withhold payment of a refund for a period not to exceed three months after receipt of an application from a member. Refund of contributions may be made in installments within the three-month limit.

 

Modified 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 17 Com. Reg. 13524 (June 15, 1995); Amdts Proposed 17 Com. Reg. 13015 (Mar. 15, 1995); Amdts Adopted 16 Com. Reg. 12439 (Sept. 15, 1994); Amdts Proposed 16 Com. Reg. 11874 (May 15, 1994).

 

Commission Comment: The Commission changed “become” to “became” in subsection (a) to correct a manifest error. The Commission designated the subparts of subsection (a), which were not designated in the original.

 

The 1995 amendments readopted and republished this section in its entirety with numerous amendments. In 2006, this section was amended and re-designated from § 110-10-270 to § 110-10-235. This section was formerly entitled “Reporting Required for Payment on Behalf of Recipients Who Are Incapable of Self-management” (§ 110-10-270). The 2006 amendments, among other changes, added subsections (a)(3) through (a)(4) and (b) through (e).

 

In October 2007, PL 15-98 amended 1 CMC Section 8356(a) to authorize Class I Retirement Fund members with 15 years of contributing member service to withdraw their contributions.

 

§ 110-10-240   Interest Computation for Active Members

 

At the end of each fiscal year, regular interest shall be computed and added to the contributions of the member.

 

History: Amdts Adopted 34 Com. Reg. 32294 (Feb. 29, 2012); Amdts Proposed 33 Com. Reg. 32094 (Nov. 29, 2011); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 17 Com. Reg. 13524 (June 15, 1995); Amdts Proposed 17 Com. Reg. 13015 (Mar. 15, 1995); Amdts Adopted 16 Com. Reg. 12439 (Sept. 15, 1994); Amdts Proposed 16 Com. Reg. 11874 (May 15, 1994).

 

Commission Comment: In 2006, this section was amended and re-designated from § 110-10-275 to § 110-10-240. This section was formerly entitled “Penalty for Failure to File a Report” (§ 110-10-275). The 2012 amendments removed the fixed interest rate.

 

§ 110-10-245   Prior Service Credit per Public Law 8-39 [former 1 CMC §§ 8323-8326]

 

Only those persons who became members before December 5, 2003 (the effective date of Public Law 13-60) and did not refund contributions are eligible to apply for the prior service credit for service described in former 1 CMC § 8323, provided all other requirements are met.

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 12439 (Sept. 15, 1994); Amdts Proposed 16 Com. Reg. 11874 (May 15, 1994).

 

Commission Comment: In 2006, this section was amended and re-designated from § 110-10-280 to § 110-10-245. This section was formerly entitled “Vesting Service Credit for Overtime or Compensatory Time” (§ 110-10-280).

 

§ 110-10-250   Survivors’ Benefits for Children

 

(a)        Benefits for children of a deceased member shall be paid to the surviving spouse for the benefit of the children, or if there is no surviving spouse, to a guardian appointed by a court of competent jurisdiction for the benefit of the children.

 

(b)        Death of a member with children by different spouses:

(1)        If a deceased member has children eligible for survivor’s benefits, such children shall be entitled to a pro rata share of children’s benefits payable, regardless of whether they continue to reside with the member’s surviving spouse.

(2)        The fact that such children may not be children of the surviving spouse is irrelevant in determining the children’s benefits.

(3)        All benefits payable to children who are not residing with the surviving spouse shall be payable to the legal guardian appointed for such children. If a child is over 18 years of age, is not under legal guardianship and is eligible for a benefit, the benefit shall be payable to the child.

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: In 2006, this section was amended and re-designated from § 110-10-220 to § 110-10-250. This section was formerly entitled “Early Retirement Bonus” (§ 110-10-290). The 2006 amendments, among other changes, removed former subsection (b) and re-designated subsection (c) to (b).

 

§ 110-10-255   Death After Separation — Non-vested Members: Refund to Survivors: No Annuities

 

(a)        Pre-PL 11-9: Non-Vested Members — Less Than Three Years Membership Service:

Upon the death of a person who became a member after October 1, 1980, but before April 16, 1998 (effective date of PL 11-9), and whose government service terminated with less than three years of membership service, and who did not obtain a refund of contributions, the estate or beneficiary of the deceased is entitled to receive a full refund in the case of a class II member and a 1/3 refund in the case of a class I member of the total amount of contributions made by the member, including regular interest. Payment of such a refund shall be made in accordance with 1 CMC § 8348.

 

(b)        Post PL 11-9: Non-Vested Members — Less Than Ten Years Membership Service

Upon the death of a person who became a member after April 16, 1998 (effective date of PL 11-9), and whose government service terminated with less than ten years of membership service, and who did not obtain a refund of contributions, the estate or beneficiary of the deceased is entitled to receive a full refund in the case of a class II member and a 1/3 refund in the case of a class I member of the total amount of contributions made by the member, including regular interest. Payment of such refunds shall be made in accordance with 1 CMC § 8348.

 

Modified 1 CMC § 3806(e), (f).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The March 2006 amendments added this section. This section was formerly entitled “Procedure for Certification of Lack of Funds” which was repealed by the 2006 amendments.

 

§ 110-10-260   Death After Separation — Vested Members: Survivors’ Annuities

 

(a)        Pre-PL 11-9: Vested Members — Three Years or More Membership Service:

Upon the death of a person who became a member after October 1, 1980 but before April 16, 1998 (effective date of PL 11-9), and whose government service terminated with three years or more of membership service, and who did not obtain a refund of contributions, the survivors shall be entitled to annuities in accordance with 1 CMC § 8351 for survivors of class I members and in accordance with 1 CMC § 8353 for survivors of class II members.

 

(b)        Post-PL 11-9: Vested Members — Ten Years or More Membership Service:

Upon the death of a person who became a member after April 16, 1998 (effective date of PL 11-9), and whose government service terminated with ten years or more of membership service, and who did not obtain a refund of contributions, the survivors shall be entitled to annuities in accordance with 1 CMC § 8351 for survivors of class I members and in accordance with 1 CMC § 8353 for survivors of class II members.

 

(c)        Death After Separation Vested Members, No Persons Eligible For Survivors’ Annuities:

Upon the death of a vested member occurring before his or her retirement on a retirement annuity, leaving no persons eligible for survivors’ benefits, and who did not obtain a refund of contributions, a full refund in the case of a class II member and a 1/3 refund in the case of a class I member of the total amount of contributions made by the member, including regular interest, shall be paid to the beneficiaries or estate of the member, in accordance with 1 CMC § 8348(b).

 

Modified 1 CMC § 3806(e), (f), (g).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The Commission changed “an refund” to “a refund” in subsection (b) to correct a manifest error. The March 2006 amendments added this section. This section was formerly entitled “Basis for the Payment of Bonus; Withholdings” (§ 110-10-295).

 

§ 110-10-265   Designation of Payee on Behalf of Recipient of Benefits

 

(a)        Payment of retirement benefits or other benefits issued under the Fund plan is personal to the recipient as provided under 1 CMC § 8383. For this reason, the benefit shall not be assigned or paid to any person other than the recipient, unless the person lacks the legal capacity to directly receive the benefit as follows:

(1)        The recipient is under the age of 18 years;

(2)        The recipient has been declared by a court of competent jurisdiction to be mentally incapable of managing his/her own affairs, financial or otherwise.

 

(b)        Payment of benefits to recipients who are under the age of 18 years shall be made to the recipient’s legal guardian(s).

 

(c)        If a court of competent jurisdiction appoints a legal guardian for the recipient, the legal guardian shall serve as the payee.

 

(d)       For purposes of payments on behalf of a recipient, a power of attorney in any manner, shape or form, executed after the date of declaration of incompetence of the recipient, shall not be honored or recognized by the Board nor can it be used to determine a payee.

 

(e)        Application for a change of payee shall be filed by the person eligible under this section to receive the benefits, on a form prescribed by the Board. The Board shall have the final determination on all applications submitted.

 

Modified 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The Commission changed the semi-colon to a period at the end of subsection (a)(2) to correct a manifest error. In 2006, this section was amended and re-designated from § 110-10-230 to § 110-10-265.

 

§ 110-10-270   Reporting Required for Payment on Behalf of Recipients Who Are Incapable of Self-management

 

(a)        Persons authorized to receive payment of benefits on behalf of the recipient pursuant to § 110-10-265 shall file with the Fund a monthly report on the use of the funds received during the previous month. The report must be signed and contain the following language or its legal equivalent: “I declare under penalty of perjury under the laws of the Commonwealth of the Northern Mariana Islands that the contents of this declaration are true to the best of my knowledge and belief. Dated this ____day of ______, 20___, at (village or city where signed).”

 

(b)        The report required under this section § 110-10-270 shall be in writing, contain a statement of how and on what the funds were used to benefit the recipient, filed no later than the last day of the month following the month on which a payment was received.

 

Modified 1 CMC § 3806(c).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: In 2006, this section was amended and re-designated from § 110-10-235 to § 110-10-270.

 

§ 110-10-275   Penalty for Failure to File a Report

 

(a)        If the payee fails to submit a report as required under § 110-10-270, the payee shall, after notice and an opportunity to respond, return the exact amount of benefits received for the month in which a report was due but not filed.

 

(b)        If the payee fails to return the funds pursuant to § 110-10-275(a), and the Board so directs, the legal counsel for the Board shall initiate a civil action to collect the amount due as determined by the Board, after exhaustion of administrative remedies.

 

(c)        Failure by the person designated as payee to file a required report shall be ground for termination of such designation and the Board may require that another qualified person be appointed or designated to become the payee as described in § 110-10-265.

 

Modified 1 CMC § 3806(c).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: In 2006, this section was amended and re-designated from § 110-10-240 to § 110-10-275.

 

§ 110-10-280   Vesting Service Credit for Overtime, Compensatory Time and Accumulated Sick Leave

 

(a)        Active employees who were paid or granted overtime, compensatory time, or earned accumulated sick leave after January 1, 1985 may be eligible for vesting service credit for overtime, compensatory time, and accumulated sick leave provided the other requirements of this section are met:

(1)        The person must have been a member prior to December 4, 2003 (the effective date of Public Law 13-60) and has not been refunded his or her contributions;

(2)        Overtime or compensatory time hours must exceed 2,080 hours of regular hours worked within the calendar year. For example, if an employee works 2,000 regular hours and 200 hours of overtime or compensatory time for the year, the employee is entitled to 120 hours of additional membership service credit (2,200 hours minus 2,080 hours equals 120 hours);

(3)        Overtime and compensatory time must have been paid to, or used by, the employee; unpaid and unused compensatory time shall not be converted to service credit.

(4)        Overtime and compensatory time must be certified by the Director of Finance or the head of the autonomous agency where overtime or compensatory time was accrued.

(5)        A person who becomes a member after December 5, 2003 is not eligible for vesting service credits for overtime, compensatory and accumulated sick leave.

 

(b)        Overtime and compensatory time and accumulated sick leave hours will be converted to vesting service credit by using the following conversion table:

 

Membership Service Conversion Table

For Sick Leave, Overtime or Compensatory Time

 

No. Day

 

1 Dy & Up

 

1 Mo & Up

 

2 Mo & Up

 

3 Mo & Up

 

4 Mo & Up

 

5 Mo & Up

 

6 Mo & Up

 

7 Mo & Up

 

8 Mo & Up

 

9 Mo & Up

 

10 Mo & Up

 

11 Mo & Up

0

--

173

347

520

693

867

1040

1213

1387

1560

1733

1907

1

6

179

352

527

699

872

1046

1219

1392

1566

1739

1912

2

12

185

358

532

705

878

1052

1225

1398

1572

1745

1918

3

17

191

364

537

711

884

1057

1231

1404

1577

1751

1924

4

23

196

370

543

716

890

1063

1236

1410

1583

1756

1930

5

29

202

376

549

722

896

1069

1242

1416

1589

1762

1936

6

35

208

381

555

728

901

1075

1248

1421

1595

1768

1941

7

40

214

387

560

734

907

1080

1254

1427

1600

1774

1947

8

46

220

393

566

740

913

1086

1260

1433

1606

1780

1953

9

52

225

399

572

745

919

1092

1265

1439

1612

1785

1959

10

58

231

404

578

751

924

1098

1271

1444

1618

1791

1964

11

64

237

410

584

757

930

1104

1277

1450

1624

1797

1970

12

69

243

416

589

763

936

1109

1283

1456

1629

1803

1976

13

75

248

422

595

768

942

1115

1288

1462

1635

1808

1982

14

81

254

428

601

774

948

1121

1294

1468

1641

1814

1988

15

87

260

433

607

780

953

1127

1300

1473

1647

1820

1993

16

92

266

439

612

786

959

1132

1306

1479

1652

1826

1999

17

98

272

445

618

792

965

1138

1312

1485

1658

1832

2005

18

104

277

451

624

797

971

1144

1317

1491

1664

1837

2011

19

110

283

456

630

803

976

1150

1323

1496

1670

1843

2016

20

116

289

462

636

809

982

1156

1329

1502

1676

1849

2022

21

121

295

468

641

815

988

1161

1335

1508

1681

1855

2028

22

127

300

474

647

820

994

1167

1340

1514

1687

1860

2034

23

133

306

480

653

826

1000

1173

1346

1520

1693

1866

2040

24

139

312

485

659

832

1005

1179

1352

1525

1699

1872

2045

25

144

318

491

664

838

1011

1184

1358

1531

1704

1878

2051

26

150

324

497

670

844

1017

1190

1364

1537

1710

1884

2057

27

156

329

503

676

849

1023

1196

1369

1543

1716

1889

2063

28

162

335

508

682

855

1028

1202

1375

1548

1722

1895

2068

29

168

341

514

688

861

1034

1208

1381

1554

1728

1901

2074

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993).

 

Commission Comment: In 2006, this section was amended and re-designated from § 110-10-245 to § 110-10-280. The 2006 amendments, among other changes, removed former subsection (b), re-designated subsection (c) to (b) and changed “Day 25 4 Mo & Up” from “836” to “838” in the Membership Service Conversion Table.

 

§ 110-10-285   Members With Two or More Concurrent Government Jobs

 

(a)        A person who became a member before December 5, 2003 (the effective date of Public Law 13-60) and held two or more concurrent CNMI government jobs qualifying for membership may be eligible for membership service credit for any hours worked in excess of 2,080 hours in a calendar year. Any such membership credit will be calculated consistent with § 110-10-280.

 

(b)        A person who became a member on or after December 5, 2003 (the effective date of Public Law 13-60) and held two or more concurrent CNMI government jobs qualifying for membership is not eligible for membership service credit for any hours worked in excess of 2,080 hours in a calendar year.

 

(c)        However, the salary from each of the concurrent CNMI government jobs shall be used in the computation of any retirement benefits.

 

Modified 1 CMC § 3806(c), (f).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The March 2006 amendments added this section.

 

§ 110-10-290   Early Retirement Bonus

 

(a)        A person who was a member of the Fund before December 15, 1999 (the effective date of Public Law 11-114), may be eligible for a bonus equal to 30% of the annual salary of the member pursuant to Public Law 8-30 [1 CMC §§ 8401-8405 (repealed by PL 11-114)]. A person who became a member of the Fund on or after December 15, 1999 (the effective date of Public Law 11-114) is not eligible for the bonus. Election to receive the bonus shall be in writing and on a form prescribed by the Board of Trustees. The requirements for eligibility to elect and receive the bonus are as follows:

(1)        Employees, except those specifically exempted by law, who had twenty or more years of vesting service credit with the Fund on October 1, 1993, may elect to receive the bonus and retire within 90 days of October 1, 1993, but not later than December 31, 2005.

(2)        Employees, except those specifically exempted by law, who had less than twenty years of vesting service credit with the Fund on October 1, 1993, may elect to receive the bonus and retire within 90 days of attaining 20 years of vesting service with the Fund, but not later than December 31, 2005.

(3)        Any member of the Fund who is occupying an exempted position may be eligible for the bonus only upon attaining at least 20 years of vesting service with the Fund and who elects to retire, but not later than December 31, 2005.

(4)        Any employee who does not make an election during the 90-day election period, and who converts to a position or status exempted from the civil service, shall not be eligible for the bonus.

(5)        Any employee, unless exempted by law from the 90-day election requirement, who fails to elect and retire within the 90 days of becoming eligible for the early retirement bonus, shall not be eligible for the bonus.

(6)        Any employee whose position is classified by the Civil Service Commission and has attained or upon attainment of 20 years of vesting service, may elect to receive the bonus and retire within 90 days of attaining 20 years of vesting service, but not later than December 31, 2005.

(7)        Excepted service employees or employees who are under an employment contract and who have attained 20 years of vesting service, may elect to receive the bonus and retire within 90 days of the expiration of the employment contract, or if renewed within 90 days of the expiration of any renewed contract, but not later than December 31, 2005.

(8)        Any elected official, or any department head appointed by the governor, or any special assistant to the governor, who has attained at least 20 years of vesting service, may elect to receive the bonus and retire within 90 days of the expiration of his or her term of office, but not later than December 31, 2005.

(9)        Employees appointed by elected officials who have attained 20 years of vesting service, may elect to receive the bonus and retire within 90 days of the expiration of the term of the appointing elected official, but not later than December 31, 2005.

(10)      Teachers, nurses, doctors or attorneys for the CNMI government who have attained 20 years of vesting service; may elect to receive the bonus and retire at any time, but not later than December 31, 2005.

 

(b)        For purposes of eligibility for the 30% bonus, 20 years of vesting service shall consist of the following:

(1)        Actual membership service.

(2)        Credited prior service. Prior service that has not been credited or has not been fully paid will not be counted until it is fully paid and credited, except when the member elects to retire prior to full settlement of the amounts due with appropriate deductions from the annuity amount.

 

(c)        Vesting service of education and military service shall not be included in the determination of bonus eligibility until the employee elects to retire. Credited overtime or compensatory time and sick leave balance also will be considered only at the time the employee elects to retire.

 

(d)       Pursuant to section 11 of Public Law 13-60 [comment to 1 CMC § 8253], no early retirement bonus shall be paid to a government employee electing to retire after December 31, 2005.

 

Modified 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993).

 

Commission Comment: In 2006, this section was amended and re-designated from § 110-10-250 to § 110-10-290.

 

§ 110-10-295   Basis for the Payment of Bonus; Withholdings

 

(a)        The 30% early retirement bonus shall be based on the lower of the annual salary received during the last 12 months consisting of 26 pay periods immediately preceding the date of retirement; or, the annual salary stated in the most recent personnel action preceding the date of early retirement.

 

(b)        The early retirement bonus is subject to withholding for retirement fund contribution and all applicable taxes.

 

(c)        The cost of the early retirement bonus shall be borne by the employee’s hiring authority or as provided by law (PL 11-114).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993).

 

Commission Comment: In 2006, this section was amended, including the title, and re-designated from § 110-10-260 to § 110-10-295.

 

Part 300 -       Rights and Obligations

 

§ 110-10-301   Time for Payments and Method of Payment

 

(a)        All payments for benefits (retirement, disability, surviving spouse and surviving child) shall be made on the fifteenth and last day of every month. Payments will not be disbursed, remitted or released prior to the scheduled disbursement date for any reason.

 

(b)        Periodic benefits payable to annuitants shall only be made by electronic direct deposit into a single account designated in writing by the annuitant, which account must be in the name of the annuitant. Remittance of annuity payments by check or bank draft shall cease and is no longer authorized following April 1, 2012. Each annuitant shall designate its direct deposit account on or before March 1, 2012 on a form designated by the Fund, and may update such designation once annually each December in connection with the Fund’s Annuity Recipient Information Update (Form RF-200). Benefits payable to those failing to provide appropriate information to the Fund shall be held in abeyance until such time as appropriate direct deposit instructions are received by the Fund. One time “lump sum” benefits such as a Single Sum Death Benefit payment shall be paid by check on the thirtieth (30th) of the month following the Fund’s acknowledgement of the beneficiary’s complete application therefore*.

 

(c)        Except for changes made during the Fund’s annual account update process described in subpart (b) above, there shall be a service charge of twenty-five dollars ($25.00) to change a designated direct deposit account.

 

(d)       Upon death of an annuitant before a scheduled annuity disbursement date, the pro rata share of the deceased annuitant shall be payable to the surviving spouse or beneficiary, as the case may be. If the deceased annuitant has no surviving spouse or beneficiary, the pro rata share shall be held in abeyance pending the court appointment of an administrator of the estate.

 

* So in original.

 

Modified 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 34 Com. Reg. 32291 (Feb. 29, 2012); Amdts Proposed 33 Com. Reg. 32107 (Nov. 29, 2011); Amdts Adopted 30 Com. Reg.28516 (May 27, 2008); Amdts Proposed 30 Com. Reg. 28378 (March 25, 2008); Amdts Adopted 29 Com. Reg. 26693 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26666 (July 18, 2007); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The Commission changed “are no longer” to “is no longer” in the second sentence of subsection (b). The March 2006 amendments made changes to subsections (a)-(c). The August 2007 amendments changed the title of this section and repealed and replaced subsection (b). The May 2008 amendments made changes to § 110-10-301(a). The February 2012 amendments amended all subsections.

 

§ 110-10-305   Anti-Fraud Provision

 

The Fund may, from time to time, request for updated pertinent information, including but not limited to tax information, current identification, driver’s license and the like. It is the duty of the recipient to timely respond to requests for updated information. Substantial or repeated failure to provide complete information or providing false or misleading information shall constitute grounds for terminating benefits.

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Part 400 -       Other Benefits

 

§ 110-10-401   Cost of Living Allowance (COLA)

 

(a)        Eligible class I and class II retirees and surviving spouses in receipt of a retirement or disability annuity from the Fund may have their annuity adjusted for COLA as determined by the Board.

 

(b)        The determination of the Board of Trustees whether or not to approve a COLA for a particular year shall occur on or about its first regular board meeting following the passage into law of each fiscal year’s budget; and shall be based on factors consistent with the fiduciary obligations of the Board and shall include, but not be limited to, the availability of funds specifically appropriated for the purpose.

 

(c)        In the event that a COLA adjustment is determined by the Board, an eligible retiree or surviving spouse is entitled to such adjustment commencing on January 1 subsequent to the anniversary of the member’s retirement date upon attaining the following ages:

(1)        Class I retirees: 55 years

(2)        Class I surviving spouses with eligible surviving children: 62 years

(3)        Class 1 surviving spouses without children: 55 years

(4)        Class II retirees: 55 years

(5)        Class II surviving spouses: 55 years

(6)        Disability annuitants: upon conversion to retirement annuity at 62 years

 

(d)       The COLA rate shall be set by the Board of Trustees each year, using as a guideline the rate used by the United States of America Social Security System for its beneficiaries, and shall only be applied to the first thirty-thousand dollars of each beneficiary’s annuity amount. Once the Board of Trustees adopts the COLA rate, it will be the same rate applied throughout the calendar year.

 

(e)        Nonwithstanding any law or regulation to the contrary, each year the Board of Trustees may authorize by a vote of 2/3 of its membership to grant an annual retirement bonus (“ARB”) instead of a COLA (as permitted by P.L. 17-32). The decision to grant an ARB instead of a COLA pursuant to subsection (b) above shall be based in large part upon the present level of funding of the Retirement Fund. The Board shall not approve a COLA for any year until such time as an actuary determines that the Retirement Fund is at full funding level, and projected to be able to pay all accrued liabilities as they become due. An ARB will not be compounded or otherwise operate to increase the annuity amount of a retiree, disability annuitant or survivor spouse from year to year.

 

(f)        No COLA or ARB actually paid shall exceed the amount appropriated by the Legislature and will only be paid to members once the funding has been transmitted to the Retirement Fund by the Treasurer of the Commonwealth.

 

Modified 1 CMC § 3806(f).

 

History: Amdts Adopted 33 Com. Reg. 31758 (July 22, 2011); Amdts Proposed 33 Com. Reg. 31547 (Apr. 21, 2011); Amdts Adopted 29 Com. Reg. 26693 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26666 (July 18, 2007); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993).

 

Commission Comment: The 1994 amendments repealed former part 6, entitled “Cost of Living Adjustment,” and promulgated a new part 6, codified in this part. See 12 Com. Reg. 7444 (Nov. 15, 1990); 11 Com. Reg. 6624 (Nov. 15, 1989); 11 Com. Reg. 6298 (July 15, 1989).

 

The March 2006 amendments made numerous changes throughout this section. The August 2007 amendments changed the title of this section and repealed and replaced subsection (b).

 

Public Law 17-32, effective February 16, 2011, codified at 1 CMC § 8358, amended the powers of the Board to provide for annual retirement bonuses in place of cost of living increases. The July 2011 amendments amended all sections to implement PL 17-32 and inserted new subsections (e) and (f).

 

The Commission corrected the capitalization of the phrase “board meeting” in subsection (b) and struck the figure “$30,000” in subsection (d) pursuant to 1 CMC § 3806(e) and (f).

 

§ 110-10-405   Government Life Insurance Contributions and Level of Coverage

 

(a)        Members in receipt of a service or age retirement annuity shall have the option to elect, on a form prescribed by the Board of Trustees, to receive the same level of life insurance coverage in force at the time of their retirement. Premiums for the excess coverage (an amount in excess of what is presently being made available by the government insurance carrier for retirees) are subject to the prevailing rate for active government employees or as established by the Board based on the prevailing rate for retirees.

 

(b)        The retiree and the Fund shall share the premium cost for coverage beginning October 1, 1993. However, if coverage is made retroactive to the date of retirement (prior to October 1, 1993) the one-time cost of premium will be paid solely by the Fund.

 

(c)        The retroactive effective date does not apply to deceased annuitant’s estate or cause added benefits to be paid to survivors of deceased annuitants.

 

(d)       In the event the existing government life insurance carrier does not consent to provide the additional life insurance coverage, the Board will establish a Life Insurance Trust Fund to meet the requirements of the law.

 

(e)        A retiree who did not carry life insurance coverage immediately prior to retirement shall not be eligible for the option described in subsection (a) of this section.

 

Modified 1 CMC § 3806(f).

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993).

 

Commission Comment: The March 2006 amendments added “Government” to the title of this section and made changes to subsections (a)-(b).

 

§ 110-10-410   Health Insurance Contributions, Term Health Insurance Contributions/Coverage for Defined Contribution Plan Members, and Term Life Insurance Contributions/Coverage for Defined Contribution Plan Members

 

(a)        Annuitants shall be provided with an option, to be exercised within six months of the date of retirement, to continue their Commonwealth government health insurance coverage under the same group terms and conditions as that government coverage, if any, offered each fiscal year to Commonwealth government employees. The Fund assumes no liability to the annuitant for group health insurance coverage beyond the payment of the government’s share of the premiums for that fiscal year on behalf of an electing annuitant as provided in this section. Any person who declines to exercise the health insurance option within six months of the date of retirement, or who exercises the option and subsequently cancels health insurance coverage more than six months after the date of retirement, shall not be entitled to reapply for coverage.

 

(b)        Annuitants who exercise the option within six months of the date of retirement to continue their Commonwealth government health insurance coverage under the same group terms and conditions as that government coverage, if any, was offered that same, or preceding (depending on the annuitant’s retirement date), fiscal year to Commonwealth government employees shall remit any and all applicable premium payment in a lump-sum for the premium applicable to the period of time within that same six month period.

 

(c)        Members of the defined contribution plan are eligible for the same term health insurance coverage and term life insurance coverage available to defined benefit plan members with the exception of the annuitant’s option to continue their Commonwealth government health insurance or life insurance coverage pursuant to 1 CMC § 8363, and 1 CMC § 8364, as amended by PL 15-70, and originally modified by PL 15-13, codified at 1 CMC §§ 8472-73.*

 

* 1 CMC §§ 8472-73 address occupational disability and death benefits, not health or life insurance.

 

Modified 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 29 Com. Reg. 26693 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26666 (July 18, 2007); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993).

 

Commission Comment: The Commission removed “is” from “if any, is offered” in subsection (a) to correct a manifest error.

 

The March 2006 amendments made changes to subsection (a) and deleted former subsection (b)(2). The August 2007 amendments changed the title and repealed and replaced this section in its entirety.

 

Public Law 17-66, effective December 20, 2011, codified at 1 CMC § 8363(a), amended the Retirement Fund’s life insurance provisions. To the extent that this regulation conflicts with Public Law 17-66, it is superseded.

 

§ 110-10-415   Survivor’s Benefits upon Death of a Terminated Vested Member

 

[Repealed.]

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006) (repealed); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Amdts Adopted 16 Com. Reg. 11694 (Feb. 15, 1994); Amdts Proposed 15 Com. Reg. 11162 (Dec. 15, 1993).

 

Commission Comment: This section was repealed by the March 2006 amendments. See § 110-10-250 Survivors’ Benefits for Children, § 110-10-255 Death After Separation — Non-vested Members: Refund to Survivors; No Annuities and § 110-10-260 Death After Separation — Vested Members: Survivors’ Annuities for information regarding survivor benefits.

 

Part 500 -       Appeals

 

§ 110-10-501   Appeal from Decision of Administrator

 

Any person aggrieved by a decision of the Administrator of the Retirement Fund shall appeal the decision to the Board by filing a written notice of appeal with the Board within 30 days of the date of the Administrator’s decision. A failure to file a timely appeal will result in its dismissal.

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The March 2006 amendments changed “may” to “shall” in the first sentence of this section.

 

§ 110-10-505   Contents of the Notice of Appeal

 

The notice of appeal shall contain:

 

(a)        The name of the party appealing;

 

(b)        A brief statement of any disputed factual matters in the decision of the Administrator; and

 

(c)        A brief statement of any disputed legal issues in the decision of the Administrator.

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: In March 2006, this section was re-promulgated without change.

 

§ 110-10-510   Hearing on Appeal

 

(a)        After reviewing the notice of appeal, the Board may then, at its discretion, in accordance with 1 CMC § 9109, either:

(1)        Preside at the taking of evidence; or

(2)        Appoint a hearing officer to preside at the taking of the evidence.

No hearing officer will be appointed where the aggrieved party in its notice of appeal does not dispute any factual findings of the Administrator, or raise any new factual issues.

 

(b)        In accordance with 1 CMC § 9110, if a hearing officer is appointed, the hearing officer shall only issue a recommended decision in the case in accordance with the procedures outlined in 1 CMC § 9109. The recommended decision of the hearing officer shall be promptly served on the Board of Trustees. The hearing officer shall then certify the entire record in the matter, along with the recommended decision to the Board of Trustees so that the Board of Trustees can issue its decision and order in the matter in accordance with the procedures outlined in 1 CMC § 9110. The hearing officer shall provide the recommended decision to the Board of Trustees within ninety days from the date the matter was referred to the hearing officer, or the hearing officer shall inform the Board, in writing, of the reason for any delay with an estimated date for delivery of the recommended decision.

 

(c)        At the next meeting of the Board of Trustees following receipt of the hearing officer’s recommended decision, the Board of Trustees shall issue its decision on the matter. Any appeal of the Board’s decision shall be made to the Commonwealth Superior Court in accordance with 1 CMC § 9112(b).

 

(d)       In accordance with 1 CMC § 9110, if the Board presides at the initial hearing, the Board shall decide the case in accordance with the procedures outlined in 1 CMC § 9109. Any appeal of the Board’s decision shall be made to the Commonwealth Superior Court in accordance with 1 CMC § 9112(b).

 

(e)        For purposes of all administrative proceedings and appeals under this part, service shall be accomplished by any reasonable means including personal service, registered mail and publication.

 

Modified 1 CMC § 3806(f).

 

History: Amdts Adopted 32 Com. Reg. 30554 (July 15, 2010); Amdts Proposed 32 Com. Reg. 30341 (May 21, 2010); Amdts Adopted 31 Com. Reg. 29980 (Dec. 22, 2009); Amdts Proposed 31 Com. Reg. 29940 (Oct. 29, 2009); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The March 2006 amendments added subsection (d) and the second sentence to subsection (b). The 2009 amendments amended subsection (b). The 2010 amendments amended subsection (b), inserted a new subsection (c), re-designated former subsections (c) and (d), and amended new subsection (d).

 

The Commission struck the figure “90” in subsection (b) pursuant to 1 CMC § 3806(e).

 

§ 110-10-515   Appeal to the Board From a Decision of the Hearing Officer

 

[Repealed.]

 

History: Repeal Adopted 32 Com. Reg. 30554 (July 15, 2010); Repeal Proposed 32 Com. Reg. 30341 (May 21, 2010); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The March 2006 amendments deleted former subsection (b) and re-designated the remaining sections accordingly.

 


 

Table 500-1    Administrative Appeals New Process

 

History: Adopted 32 Com. Reg. 30554 (July 15, 2010); Proposed 32 Com. Reg. 30341 (May 21, 2010).

 

Commission Comment: The original regulation did not designate this page. The Commission designated it as Table 500-1 pursuant to 1 CMC § 3806(a).

 

§ 110-10-520   Legal Representation in Fund Proceedings

 

A person may represent himself or herself in connection with any administrative hearing or other proceeding of the Fund. A person may also be represented in such matters by any attorney licensed to practice in the Commonwealth. A person shall not be represented in such matters by any other person; provided, however, that a person may bring such witnesses, translator(s), and observers to a proceeding as he or she deems necessary.

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The March 2006 amendments removed the parenthetical reference to the Commonwealth Register found at the end of this section.

 

Part 600 -       Notice

 

§ 110-10-601   Address of Record

 

(a)        A member shall provide the Fund with an address of record at which to receive notices, benefits or correspondence from the Fund. Should the member move or choose to designate another address of record, the member shall notify the Fund, in writing, of any change in address within 30 days of the change. In the event the member does not comply with this requirement, the member’s last address on file shall be deemed the member’s address of record until such time the member provides the Fund with a notice of change in address.

 

(b)        Should the member leave the Commonwealth for longer than a 30 day period, whether temporarily, indefinitely or permanently, the member shall likewise provide the Fund with an address at which to receive notices, benefits and correspondence. In the absence of such notice, the member’s last address on file shall be deemed the member’s address of record until such time the member provides the Fund with a notice of change in address. Any notice, benefits or correspondence may be mailed by the Fund to the address of record. The Administrator shall maintain a log of any returned or undeliverable mail.

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The Commission designated subsections (a)-(b), which were not designated in the original.

 

§ 110-10-605   Notice to the Fund

 

(a)        Except where otherwise provided by law, a notice of appeal or other official notice, such as but not limited to an address change or application for benefits, must be filed at either the Fund’s main office on Saipan, or at either of the Fund’s satellite offices on Tinian or Rota.

 

(b)        A filing also may be made by confirmed facsimile transmission to the Fund’s main office facsimile number, (670) 664-8080, or whatever main office facsimile number is currently designated and posted in any of the Fund offices on Saipan, Tinian or Rota, provided that the signed original must be received at the main office within fourteen calendar days of the facsimile transmission.

 

(c)        Any notices, applications or other documents provided to the Fund’s satellite offices on Tinian or Rota will be deemed filed when received at the Fund’s satellite office.

 

Modified 1 CMC § 3806(e).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The Commission designated subsections (a)-(c), which were not designated in the original. The Commission changed the colon at the end of subsection (a) to a period.

 

Part 700 -       Spousal and Child Support Obligations Arising Out of Judicial Proceedings

 

§ 110-10-701   Spousal and Child Support Obligations Arising Out of Judicial Proceedings Defined

 

For purposes of this part and section 6(h) of Public Law 13-60 [1 CMC § 8383(b)], the following definitions and requirements shall apply, regardless of when the employee became a member of the Fund. (Source: 8 CMC §§ 1311, 1828; Rice v. Rice, 757 P.2d 60, 61 (Alas. 1988).)

 

(a)        In General. The term “spousal and child support obligations arising out of judicial proceedings” means any judgment, decree, or order (hereinafter collectively referred to as a “domestic relations order,” including approval of a property settlement agreement) which —

(1)        Relates to the provisions of child support or alimony payments, including arrearages, or marital property rights to a spouse, former spouse, child or other dependent of a member;

(2)        Is made pursuant to a state’s, commonwealth’s, territory’s, or country’s domestic relations law (including a community property law);

(3)        Creates or recognizes the existence of an alternative payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable with respect to a participant of a plan; and

(4)        With respect to which the requirements of § 110-10-701(b) and (c) are met.

 

(b)        Order Must Clearly Specify Certain Facts. A domestic relations order meets the requirements of this part only if such order clearly specifies —

(1)        The name and last known mailing address (if any) of the member and the name and mailing address of each alternate payee covered by the order;

(2)        The amount or percentage of the participant’s benefits to be paid by the plan to each such alternate payee, or the manner in which such amount or percentage is to be determined;

(3)        The number of payments or period to which such order applies; and

(4)        Each plan to which such order applies.

 

(c)        Order May Not Alter Amount, Form, etc., of Benefits. A domestic relations order meets the requirements of this part only if such order —

(1)        Does not require the plan to provide any type or form of benefit, or any option, not otherwise provided under the plan;

(2)        Does not require the plan to provide increased benefits (determined on the basis of actuarial value); and

(3)        Does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order determined to be a domestic relations order.

 

Modified 1 CMC § 3806(c), (f), (g).

 

History: Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The Commission made “requirement” plural in subsection (a)(4) to correct a manifest error.

 

Part 800 -       Procurement

 

§ 110-10-801   Adoption of Commonwealth Procurement Regulations

 

The Commonwealth Procurement Regulations and any subsequent amendments are adopted, as modified herein, to be the procurement regulations of the Fund. All references in the Commonwealth Procurement Regulations to the Director of Procurement and Supply, Secretary of Finance, and other executive branch officials shall be deemed to refer to the Administrator of the Fund. All references to the Governor shall be deemed to refer to the Board of Trustees of the Fund. All contracts shall be subject to legal review by the Attorney General as provided in the Commonwealth Procurement Regulations. Procurement appeals may be made to the Office of the Public Auditor, as provided in the Commonwealth Procurement Regulations.

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: The Commission created the title of this section. In March 2006, this part was re-designated from part 600 and this section was amended and combined with former § 110-10-805.

 

§ 110-10-805   Modifications

 

[Repealed.]

 

History: Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005); Adopted 12 Com. Reg. 7444 (Nov. 15, 1990); Adopted 11 Com. Reg. 6624 (Nov. 15, 1989); Proposed 11 Com. Reg. 6298 (July 15, 1989).

 

Commission Comment: In March 2006, this section (former § 110-10-605) was repealed and its contents amended and combined into § 110-10-801.

 

Part 900 -       Conditions for Transfer/Conversion of Non-vested Defined Benefit Plan Members into Defined Contribution Plan

 

§ 110-10-901   Class I Members with Less than 10 Years Contributing Member Service

 

After being identified by the Administrator as eligible defined benefit plan members, class I members with less than 10 years of contributing member service shall have an option, upon written election, to voluntarily and irrevocably elect to become members of the defined contribution plan, on a prospective basis, on or after July 25, 2007 (“date selected by the Administrator”). This option to voluntarily and irrevocably elect to become members of the defined contribution plan shall expire 12 months, or up until and including July 25, 2008, after first taking effect with respect to such members.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 29 Com. Reg. 26676 (July 18, 2007); Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

Commission Comment: In July 2007, former § 110-10-901, Effective Date, and part 900 were renumbered to § 110-10-1001 and part 1000 respectively.

 

§ 110-10-905   Election to Participate in the Defined Contribution Plan

 

The election to participate in the defined contribution plan must be made in writing on forms and in the manner prescribed by the Administrator. An election made by an eligible defined benefit plan member who is married is not effective unless the election is signed by the individual’s spouse.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 29 Com. Reg. 26676 (July 18, 2007); Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

§ 110-10-910   Before Accepting the Election to Participate in the Defined Contribution Plan

 

Before accepting an election to participate in the defined contribution plan, the Administrator must provide the eligible defined benefit plan member planning on making an election to participate in the defined contribution plan with written information, including calculations to illustrate the effect of moving the eligible defined benefit plan member’s retirement plan from the defined benefit plan to the defined contribution plan as well as other information to clearly inform the eligible defined benefit plan member of the potential consequences of the eligible defined benefit plan member’s election. An election made under this section to participate in the defined contribution plan is irrevocable.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 29 Com. Reg. 26676 (July 18, 2007); Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

§ 110-10-915   Upon Making the Election to Participate in the Defined Contribution Plan

 

Upon making the election, the participant shall:

 

(a)        Be enrolled as a member of the defined contribution plan; *

 

* So in original.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 29 Com. Reg. 26676 (July 18, 2007); Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

§ 110-10-920   Effective Date of Transfer to the Defined Contribution Plan

 

Eligible defined benefit plan members transferring to the defined contribution plan will have their transfers effective at the end of the first pay period following the month of transfer or at such other time as determined by the Administrator for administrative necessity.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 29 Com. Reg. 26676 (July 18, 2007); Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

§ 110-10-925   Transfer of Membership Service from the Defined Benefit Plan to the Defined Contribution Plan

 

Upon a transfer, all membership service previously earned under the defined benefit plan shall be nullified for purposes of entitlement to a future benefit under the defined benefit plan but shall be credited for purposes of determining vesting in employer contributions under the defined contribution plan. For these purposes, “membership service” earned under the defined benefit plan means service under which employee contributions to the defined benefit plan have been paid and does not include any service for which reinstatement indebtedness to the defined benefit plan has not been fully paid.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 29 Com. Reg. 26676 (July 18, 2007); Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

§ 110-10-930   All Other Class I Members and Class II Members

 

(a)        All class I members with 10 or more years of contributing member service and all class II members of the defined benefit plan of the Retirement Fund are not eligible to transfer under this subsection to the defined contribution plan.

 

(b)        An eligible class I or class II member whose account is subject to a qualified domestic relations order may not elect to become a member of the defined contribution plan under any elective provisions set forth in § 110-10-901 through § 110-10-920, unless the qualified domestic relations order is amended or vacated and court certified copies of the order are received by the Administrator.

 

Modified 1 CMC § 3806(c), (f).

 

History: Adopted 29 Com. Reg. 26676 (July 18, 2007); Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

§ 110-10-935   Limitations of Federal Law for Participation in the Defined Contribution Plan

 

To the extent permitted by federal law, each eligible defined benefit plan member who elects to participate in the defined contribution plan shall have transferred to a new account the employee contribution account balance held in trust for the eligible defined benefit plan member under the defined benefit plan of the Northern Mariana Islands Retirement Fund. A matching employer contribution may be made on behalf of that included employee to the new account if the employer makes the matching contribution from funds appropriated by the legislature for that purpose. The amount of the matching employer contribution shall be subject to, and may not exceed, the limitation of 26 U.S.C. § 415(c) during the applicable limitation year in which the contribution is made.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 29 Com. Reg. 26676 (July 18, 2007); Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

§ 110-10-940   U.S. Internal Revenue Service Notification

 

If the Administrator receives notice from the United States Department of the Treasury, Internal Revenue Service, that this section or a portion of this section will cause the retirement plan under this part, to be disqualified for tax purposes under the Internal Revenue Code, the portion that will cause the disqualification does not apply, and the Administrator shall notify the governor and presiding officers of the legislature.

 

Modified 1 CMC § 3806(f).

 

History: Amdts Adopted 29 Com. Reg. 26676 (July 18, 2007); Amdts Proposed 29 Com. Reg. 26561 (June 18, 2007).

 

Part 1000 -     Employer/Employee Contribution

 

§ 110-10-1001             Deficient Employer/Employee Contribution

 

In accordance with 1 CMC § 8362 et al., a penalty shall be assessed for any employer and/or employee contribution not paid to the Fund within five days following the end of each payroll date.

 

(a)(1)   All unpaid employer and/or employee contribution from the Government shall be assessed, from the entire amount due, as follows:

(i)         10% penalty for one to thirty days;

(ii)        20% penalty for thirty one to sixty days; and

(iii)       25% penalty for sixty one days and beyond.

(2)        Example: The Government fails to remit to the Fund $100,000 of employer contribution, but timely makes all other employee contributions.

(i)         At the end of thirty days, the Fund shall assess 10% of $100,000, or $10,000, making the total amount the Government owes the Fund $110,000.

(ii)        At the end of sixty days, the Fund shall assess 20% of $100,000, or $20,000, making the total amount the Government owes the Fund $120,000.

(iii)       At the end of seventy five days, the Fund shall assess 25% of $100,000, or $25,000, making the total amount the Government owes the Fund $125,000.

(3)        The Fund may only assess a maximum penalty of 25%, or a total of $125,000 of unpaid employer contribution and fines for the example above.

 

(b)        The Fund shall assess the appropriate penalty and provide the Government written notice of the amount owed the Fund within ten days of assessment.

 

(c)(1)   If the Fund receives payment for deficient employee and/or employer contribution that has been penalized, all payments must first be applied towards the penalty. Any remaining funds shall therefore be applied towards the principal balance owed.

(2)        Example: As described in the above-mentioned example, the Government owes the Fund $100,000 for unpaid employer contribution and $25,000 in penalties, totaling $125,000. Subsequently, the Government remits to the Fund $75,000.

(i)         The Fund shall first satisfy the $25,000 penalty assessed, leaving a remaining balance of $50,000.

(ii)        The Fund shall therefore apply the remaining balance to the Government’s deficient employer contribution, leaving an outstanding balance, owed to the Fund, of $50,000.

 

History: Adopted 30 Com. Reg.28516 (May 27, 2008); Proposed 30 Com. Reg. 28378 (March 25, 2008).

 

Commission Comment: In May, 2008, the Northern Mariana Islands Retirement Fund renumbered § 110-10-1001 in Part 1000 to § 110-10-1101 in Part 1100 in its entirety without modification, and promulgated “Deficient Employer/Employee Contribution” as § 110-10-1001 as set forth in this section.

 

The original paragraphs of subsection (a) and (c) were undesignated. The Commission designated them as subsections (a)(1) through (a)(3) and (c)(1) and (c)(2) pursuant to 1 CMC § 3806(a). The Commission struck the figures “5” from the opening paragraph, “1” and “30” from subsection (a)(1)(i), “31” and “60” from subsection (a)(1)(ii), “61” from subsection (a)(1)(iii), “30” from subsection (a)(2)(i), “60” from subsection (a)(2)(ii), “75” from subsection (a)(2)(iii), and “10” from subsection (b) pursuant to 1 CMC § 3806(e).

 

Part 1100 -     Miscellaneous Provisions

 

§ 110-10-1101 Effective Date

 

The regulations in this chapter shall become effective pursuant to the Administrative Procedure Act, 1 CMC §§ 9101-9115.

 

Modified 1 CMC § 3806(d).

 

History: Amdts Adopted 30 Com. Reg.28516 (May 27, 2008); Amdts Proposed 30 Com. Reg. 28378 (March 25, 2008); Amdts Adopted 29 Com. Reg. 26676 (July 18, 2007); Amdts Proposed 29 Com. Reg. 26561 (June 18, 2007); Amdts Adopted 28 Com. Reg. 25536 (Mar. 30, 2006); Amdts Proposed 27 Com. Reg. 25353 (Dec. 30, 2005); Amdts Proposed 27 Com. Reg. 25043 (Oct. 24, 2005).

 

Commission Comment: The March 2006 amendments added this section. In July 2007, this part and this section were renumbered from part 900 and § 110-10-901. In May 2008, the Northern Mariana Islands Retirement Fund renumbered § 110-10-1001 in Part 1000 to § 110-10-1101 in Part 1100 in its entirety without modification, and promulgated “Deficient Employer/Employee Contribution” as § 110-10-1001 as set forth in this section.


 

 

CHAPTER 110-20

AMERICANS WITH DISABILITIES ACT GRIEVANCE PROCEDURE REGULATIONS

 


Part 001          General Provisions

§ 110-20-001   Authority

§ 110-20-005   Purpose

 

Part 100          Grievance Procedure

§ 110-20-101   Introduction

§ 110-20-105   Meeting with ADA Compliance Coordinator

§ 110-20-110   Appeal to the Administrator

§ 110-20-115   Appeal to the Board

§ 110-20-120   Appeal to the Court

§ 110-20-125   Representation


 

 

Chapter Authority: 1 CMC § 8315(g) (renumbered by PL 13-60 (effective Dec. 5, 2003)).

 

Chapter History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).

 

Commission Comment: PL 1-43 (effective Jan. 18, 1980), formerly codified at 1 CMC §§ 8301, et seq., originally created the Northern Mariana Islands Retirement Fund. PL 6-17 (effective May 7, 1989), the “Northern Mariana Islands Retirement Fund Act of 1988,” codified as amended at 1 CMC §§ 8301-8394, repealed and reenacted PL 1-43, as amended. See PL 6-17, ch. 1 § 8312; see also the commission comment to 1 CMC § 8301. PL 13-60 (effective Dec. 5, 2003), the “Retirement Integrity Assurance Act,” amended numerous provisions of the 1988 NMI Retirement Fund Act.

 

1 CMC § 8312 creates the Northern Mariana Islands Retirement Fund (NMIRF) as an autonomous agency and public corporation of the government of the Commonwealth of the Northern Mariana Islands. NMIRF, through a Board of Trustees, is empowered to establish, maintain and operate a retirement fund program for the public employees of the Commonwealth. 1 CMC § 8315(a). 1 CMC § 8315(g) (renumbered by PL 13-60) authorizes NMIRF to adopt rules and regulations as necessary for the exercise of the funds powers, performance of its duties and administration of its operations.

 

Part 001 -       General Provisions

 

§ 110-20-001   Authority

 

Under any and by virtue of the provisions of 1 CMC § 8315(f), and the Administrative Procedure Act at 1 CMC §§ 9101, et seq., the Board of Trustees of the Northern Mariana Islands Retirement Fund hereby adopts the ADA rules and regulations codified in this chapter.

 

Modified, 1 CMC § 3806(d).

 

History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).

 

Commission Comment: PL 13-60 (effective Dec. 5, 2003) renumbered former 1 CMC § 8315(f) as 1 CMC § 8315(g).

 

§ 110-20-005   Purpose

 

The purpose of the grievance procedure in this chapter is to provide a mechanism for the resolution of discrimination issues as is required by ADA.

 

Modified, 1 CMC § 3806(d).

 

History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).

 

Part 100 -       Grievance Procedure

 

§ 110-20-101   Introduction

 

Any person who believes that he/she is being discriminated against for reason of disability should follow the administrative grievance procedure to properly resolve the issues.

 

History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).

 

Commission Comment: This section was originally an introduction to part II, codified at part 100. The Commission created the section title.

 

§ 110-20-105   Meeting with ADA Compliance Coordinator

 

(a)        Any person aggrieved by the Northern Mariana Islands Retirement Fund and Workers’ Compensation Commission for reason of disability shall prepare either a written, oral, or through the aid of a personal assistant or a sign language interpreter, detailed description of the complaint stating why he/she believes a violation of ADA exists; or

 

(b)        Any person aggrieved by the Northern Mariana Islands Retirement Fund and Workers’ Compensation Commission for reason of disability shall contact by phone or personally visit the ADA Compliance Coordinator for the Retirement Fund/Workers’ Compensation Commission.

 

(c)        The ADA Compliance Coordinator upon receipt of the written, oral, or through the aid of a personal assistant or a sign language interpreter, detailed description of the complaint of discrimination pursuant to the ADA shall investigate the grievance to make sure the policies and practices of the programs are not discriminatory. If the findings of the ADA Compliance Coordinator are consistent with the aggrieved party, the ADA Compliance Coordinator shall discuss with the Administrator the need to correct the situation.

 

(d)       If a resolution is not made, the ADA Coordinator shall forward such complaint to the Administrator for proper disposition.

 

Modified, 1 CMC § 3806(g).

 

History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

In subsection (c), the Commission deleted the repeated word “shall” and changed “is consistent” to “are consistent” to correct manifest errors.

 

§ 110-20-110   Appeal to the Administrator

 

(a)        If the issue is not resolved by the ADA Compliance Coordinator, the aggrieved party may seek an audience with the Administrator of the Retirement Fund/Workers’ Compensation Commission. This can be accomplished by the ADA Coordinator preparing a request for the Administrator to entertain the issue; or the aggrieved party may contact the Administrator stating that he/she is not satisfied with the conclusion or findings of the ADA Compliance Coordinator.

 

(b)        Upon receipt of this notice, the Administrator shall schedule a meeting within 15 days of receipt of the notice to appeal the findings of the ADA Compliance Coordinator. The Administrator shall hear the appeal within 30 days and the findings issued within 20 working days.

 

History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 110-20-115   Appeal to the Board

 

(a)        If the aggrieved party is still not satisfied with the decision of the Administrator, he/she can appeal the decision to the Board of Trustees/Workers’ Compensation Commission within 30 days of receipt of the Administrator’s decision, in writing, oral or through the aid of a personal assistant or a sign language interpreter.

 

(b)        The full Board of Trustees/Workers’ Compensation Commission shall within a reasonable time hear the appeal.

 

History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 110-20-120   Appeal to the Court

 

Upon receipt of the decision of the Board and the aggrieved party is not satisfied, he/she may appeal the decision to the Commonwealth Superior Court pursuant to the Administrative Procedure Act which can be found in the Commonwealth Code [1 CMC §§ 9101, et seq.].

 

Modified, 1 CMC § 3806(g).

 

History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).

 

Commission Comment: The Commission changed “Procedures” to “Procedure” to correct a manifest error.

 

§ 110-20-125   Representation

 

Throughout the appeal process, the aggrieved party may be represented by an attorney licensed to practice law in the Commonwealth. Further, the aggrieved party may be accompanied by an expert or a teacher of the sign language for communication purposes.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 17 Com. Reg. 13048 (Mar. 15, 1995); Proposed 17 Com. Reg. 12713 (Jan. 15, 1995).


 

 

 

CHAPTER 110-30

GROUP HEALTH AND LIFE INSURANCE PROGRAM

 

SUBCHAPTER 110-30.1

GROUP HEALTH INSURANCE PROGRAM RULES AND REGULATIONS

 


Part 001          General Provisions

§ 110-30.1-001            Introduction

§ 110-30.1-005            Definitions

 

Part 100          Eligibility

§ 110-30.1-101            Employees and Their Dependents Generally

§ 110-30.1-105            Retiring Employees

§ 110-30.1-110            Dependents of a Subscriber Who Are Otherwise Eligible On Their Own Account

§ 110-30.1-115            Enrollment of Newly Acquired Dependents

§ 110-30.1-120            Spouse and Domestic Partner’s Right to Enroll Upon Death of Employee or Retiree

§ 110-30.1-125            Proof of Eligibility

§ 110-30.1-130            Documentation Required for Permanently Disabled Dependent Enrollment

§ 110-30.1-135            Documentation Required for Spouse or Domestic Partner Enrollment

 

Part 200          Enrollment

§ 110-30.1-201            Enrollment Categories

§ 110-30.1-205            Enrollment Process

§ 110-30.1-210            New Employee Enrollment Period and Effective Date of Coverage

§ 110-30.1-215            Other Employee Enrollment Period and Effective Date of Coverage

§ 110-30.1-220            Survivors’ Enrollment Period After Death of Employee or Retiree

§ 110-30.1-225            Special Enrollment under Qualified Medical Child Support Orders

§ 110-30.1-230            Medicare Part A/Mandatory Enrollment

§ 110-30.1-235            Election to Terminate/Form for Retirees and Survivors

§ 110-30.1-240            Identification Cards

§ 110-30.1-245            Retroactive Enrollments and Termination

§ 110-30.1-250            Approval of Enrollment or Enrollment Change

§ 110-30.1-255            No Guarantee of Enrollment

§ 110-30.1-260            Enrollment Denied

 

Part 300          Benefits

§ 110-30.1-301            Benefits Coverage

§ 110-30.1-305            Summary Chart (Table) on Changing Enrollment/Benefits

§ 110-30.1-310            Additional Rules for Changing Enrollment Categories (Adding or Deleting Dependents)

§ 110-30.1-315            Enrollment Change Form

§ 110-30.1-320            Administrator Approval Required

 

Part 400          Coinsurance and Co-payments

§ 110-30.1-401            Required Coinsurance and Co-payments

 

Part 500          Limitations and Exclusions

§ 110-30.1-501            Limitations and Exclusions of Coverage

§ 110-30.1-505            Workers’ Compensation; Employer Liability Law

§ 110-30.1-510            Services Provided Without Charge

§ 110-30.1-515            False Statements and Misrepresentations

§ 110-30.1-520            Provider, Enrollee Negligence

§ 110-30.1-525            Availability and Quality of Providers Not Guaranteed

§ 110-30.1-530            Acts of War

 

Part 600          Premiums

§ 110-30.1-601            Premiums

§ 110-30.1-605            Subscriber Contributions

§ 110-30.1-610            Government/Fund Contributions

§ 110-30.1-615            Payment; When Made

§ 110-30.1-620            List of Enrolled Employees

§ 110-30.1-625            List of Enrolled Dependents

§ 110-30.1-630            Full and Timely Payment

§ 110-30.1-635            Payment Receipt

§ 110-30.1-640            Deposit of Premiums Into GHLI Trust Fund

§ 110-30.1-645            Review of Program

 

Part 700          Coordination of Benefits and Double Coverage

§ 110-30.1-701            Primary or Secondary Payor Determination

§ 110-30.1-705            Double Coverage Payment Provision

§ 110-30.1-710            Information on Other Plans of Subscriber

§ 110-30.1-715            Special Provisions Regarding Medicare and No-fault Motor Vehicle Insurance Coverage

§ 110-30.1-720            Double Coverage under This Plan

 

Part 800          Subrogation

§ 110-30.1-801            Recovery of Damages for Injury or Illness Caused by Another

§ 110-30.1-805            Damages Not Recovered; Right of Subrogation

§ 110-30.1-810            Assignment of Claim Payment

 

Part 900          Administration

§ 110-30.1-901            Responsibilities of the Board

§ 110-30.1-905            Administrators Authority

§ 110-30.1-910            Maintenance of Program Records

§ 110-30.1-915            Contracts for Insurance and Administration Authorized

§ 110-30.1-920            GHLI Trust Fund

 

Part 1000        Termination

§ 110-30.1-1001          When Termination Occurs

§ 110-30.1-1005          Effective Date of Termination

§ 110-30.1-1010          Termination of Subscriber Terminates Dependents; Re-enrollment

§ 110-30.1-1015          Notification to Administrator of Loss of Dependent Status

§ 110-30.1-1020          CNMI Legislature; Power to Abolish or Amend Program Law

 

Part 2000        Reconsideration and Appeals

§ 110-30.1-2001          Request for Reconsideration of Denial

§ 110-30.1-2005          Informal Conference

§ 110-30.1-2010          Administrator’s Decision on Reconsideration

§ 110-30.1-2015          Appeal of Administrator’s Decision to Board

§ 110-30.1-2020          Appeal Hearing

§ 110-30.1-2025          Appeal to Commonwealth Superior Court

 

Part 3000        Governing Laws

§ 110-30.1-3001          Program Administered in Accordance with CNMI and Certain Federal Laws

§ 110-30.1-3005          Conflict Between Plan and Law


 

 

Subchapter Authority: 1 CMC § 8424.

 

Subchapter History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 29 Com. Reg. 26692 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26657 (July 18, 2007); Amdts Adopted 28 Com. Reg. 26304 (Oct. 30, 2006); Amdts Proposed 28 Com. Reg. 26029 (Aug. 24, 2006); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Emergency and Proposed 25 Com. Reg. 20083 (Apr. 30, 2003) (effective for 120 days from Apr. 23, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 21 Com. Reg. 16995 (Nov. 15, 1999); Amdts Proposed 21 Com. Reg. 16883 (Aug. 23, 1999); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997); Adopted 19 Com. Reg. 15387 (May 15, 1997); Proposed 19 Com. Reg. 15106 (Feb. 15, 1997); Emergency 18 Com. Reg. 14326 (Sept. 15, 1996) (effective for 120 days from Sept. 9, 1996).

 

Commission Comment: PL 1-43 (effective Jan. 19, 1980), formerly codified at 1 CMC §§ 8301, et seq., originally created the Northern Mariana Islands Retirement Fund. PL 6-17 (effective May 7, 1989), the “Northern Mariana Islands Retirement Fund Act of 1988,” codified as amended at 1 CMC §§ 8301-8394, repealed and reenacted PL 1-43, as amended. See PL 6-17, ch. 1 § 8312; see also the commission comment to 1 CMC § 8301. PL 13-60 (effective Dec. 5, 2003), the “Retirement Integrity Assurance Act,” amended numerous provisions of the 1988 NMI Retirement Fund Act.

 

1 CMC § 8312 creates the Northern Mariana Islands Retirement Fund (NMIRF) as an autonomous agency and public corporation of the government of the Commonwealth of the Northern Mariana Islands. NMIRF, through a Board of Trustees, is empowered to establish, maintain and operate a retirement fund program for the public employees of the Commonwealth. 1 CMC § 8315(a). 1 CMC § 8315(g) (renumbered by PL 13-60) authorizes NMIRF to adopt rules and regulations as necessary for the exercise of the funds powers, performance of its duties and administration of its operations.

 

The group life and health insurance programs were originally administered by the Personnel Office. Executive Order 94-3 § 307(c) (effective Aug. 23, 1994) transferred the administration of the programs to the Department of Finance. See Executive Order 94-3, reprinted in the commission comment to 1 CMC § 2001; see also PL 10-19 § 1, reprinted in the commission comment to 1 CMC § 8421. PL 10-19 (effective June 21, 1996), codified at 1 CMC §§ 8421-8427, transferred the administration of the government life and health insurance programs to the NMIRF. See 1 CMC § 8421.

 

In 1995, the Department of Finance adopted Group Health Insurance Program (GHIP) Regulations pursuant to Executive Order 94-3 § 307(c). The history of the 1995 DOF regulations is as follows: Adopted 17 Com. Reg. 12721 (Jan. 15, 1995); Proposed 16 Com. Reg. 12663 (Dec. 15, 1994).

 

NMIRF first promulgated Group Health and Life Insurance Program Rules and Regulations in May 1997. In October 1997, NMIRF repealed the Group Health Insurance Program provisions of the May 1997 regulations and promulgated new rules and regulations governing the Group Health Insurance Program with extensive revisions. See § 110-30.1-001 of this subchapter and the commission comment thereto.

 

The 2002 Group Health Insurance Program Rules and Regulations, codified in this subchapter, readopted and republished the GHIP regulations in their entirety with extensive amendments. The 2003 amendments again re-promulgated the Group Health Insurance Program Rules and Regulations in their entirety. The 2012 amendments repealed and re-promulgated the subchapter in its entirety. The history sections in this subchapter date from the October 1997 regulations.

 

The Commission corrected the spelling of “dependent” throughout this subchapter.

 

Part 001 -       General Provisions

 

§ 110-30.1-001            Introduction

 

The government of the Commonwealth of the Northern Mariana Islands provides its eligible employees, retirees and their eligible family members with an optional group health insurance program is to provide financial assistance to enrollees to help them pay for necessary health care. Public Law 10-19 [1 CMC §§ 8421-8427] transferred the administrative functions of the program, existing inventory and staff to the NMI Retirement Fund effective June 21, 1996. The GHLIP group health insurance plan group policy of insurance, as negotiated from year to year and these rules and regulations set forth the terms and conditions of this benefit.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

The 2002 amendments amended subsections (c) and (e). In subsection (c), the October 1997 regulations provided:

 

“These rules and regulations govern the program and repeal parts I, II, III, IV, V, VI, VIII and IX of the rules and regulations published in the Commonwealth Register, volume 19, number 2, on February 15, 1997, and adopted by the notice and certification of adoption appearing in the Commonwealth Register, volume 19, number 5, on May 15, 1997.”

 

See 19 Com. Reg. at 15576 (Aug. 15, 1997).

 

The 2002 amendments changed subsection (c) so that it repealed part VII of the May 1997 amendments instead of part VIII. This change was probably in error, because part VII governed the Group Life Insurance Program, which remained in effect after the October 1997 Group Health Insurance Program amendments. Part VIII, entitled Group Health Insurance Program Description,” has been effectively repealed by the promulgation of the 1997 and 2002 Group Health Insurance Program Regulation amendments. See 19 Com. Reg. at 15117 (Feb. 15, 1997). The error is significant, as it repeals the only provision promulgated regarding the Group Life Insurance Program administered by NMIRF.

 

The 2003 amendments amended subsection (d). The 2003 amendments re-promulgated the Group Health Insurance Program Rules and Regulations in their entirety. The Commission, therefore, cites the 2003 amendments in the history sections throughout this subchapter. The 2012 amendments completely re-wrote this section.

 

§ 110-30.1-005            Definitions

 

(a)        “Act” means Public Law 10-19 [1 CMC 8241-8427], an Act to Transfer the Administration of the Government Health Insurance Programs to the Northern Mariana Islands Retirement Fund, which was enacted into law effective June 21, 1996, and all subsequent amendment.

 

(b)        “Administrator” means the Administrator of the NMI Retirement fund or his or her designee. Where the fund has contracted with a private insurance company to provide benefits under the plan, the term Administrator may, at times, refer to the private insurance company.

 

(c)        “Application/Change Form” means the form prescribed by the Administrator and required to be submitted to the Administrator by any person wishing to enroll himself or herself and/or his or her dependents in the program.

 

(d)       “Board” means the Board of Trustees of the NMI Retirement Fund.

 

(e)        “Child” means a subscriber’s:

(1)        Natural child;

(2)        Legally adopted child or child placed for adoption;

(3)        Stepchild living with the subscriber in a normal parent/child relationship; and

(4)        Any individual that a court of competent jurisdiction has ordered that the subscriber provide health insurance coverage for, as their child.

 

(f)        “Contribution” means the share of the premium required to be paid by the government or the subscriber.

 

(g)        “Co-payment” means the specified portion or percentage of the cost of covered benefits that an enrollee must pay to the provider of services.

 

(h)        “Covered benefits” means the health care services covered under the program.

 

(i)         “Dependent” means a subscriber’s:

(1)        Spouse or domestic partner;

(2)        Eligible child(ren); and

(3)        Ward, over whom a subscriber has been made legal guardian by a court of competent jurisdiction.

 

(j)         “Domestic partner” means a subscriber’s current partner where the subscriber and the partner satisfy all of the following:

(1)        Both are at least eighteen years of age and are mentally competent;

(2)        They have cohabitated for two years or more years;

(3)        They share the same regular and permanent residence, with the current intent to continue to do so indefinitely;

(4)        They share a close personal and intimate relationship and are not related by blood closer than would bar marriage in the place where they legally reside;

(5)        They assume responsibility for each other’s welfare and financial well-being; and

(6)        Neither is legally married to another.

 

(k)        “Effective date” means the date on which a person is accepted as a subscriber, as established and recorded by the Administrator, and is the date on which such subscriber is first eligibility for benefits under this program.

 

(l)         “Eligible child” means a subscriber’s child who:

(1)        Is under 26 years of age; or

(2)        Is permanently disabled, as defined in these regulations.

 

(m)(1)  “Employee” means a person who is receiving salary or wages from the government and who is:

(i)         Employed by the government and regularly scheduled to work 20 or more hours per week; or

(ii)        An elected or appointed government official.

(2)        However, as to any period, the term employee will not include any individual who, during such period, is classified or treated by the government as an independent contractor, a consultant, a leased employee, or an employee of an employment agency or any entity other than the government, even if such individual is subsequently determined to have a common law employee of the government during such period. This definition also excludes any individual who serves on a government board or commission, but is not otherwise a government employee, and any individual employed by the government in violation of applicable law. Nothing in this definition will be construed to affect retirees who are authorized by law to draw their retirement benefits while working for the government in a non-employee classification.

 

(n)        “Enrollee” means any eligible employee, retiree, survivor, or dependent whose enrollment in the program has been approved by the Administrator and for whom all premium payments are current, unless failure to make premium payments was no fault of the subscriber.

 

(o)        “Enrollment change form” means the Application/Change Form prescribed by the Administrator and required to be submitted to the Administrator by any person wishing to change his or her benefit or enrollment option or to add or delete coverage of dependents.

 

(p)        “Fiscal year” means any October 1 through the following September 30.

 

(q)        “Fund” means the Northern Mariana Islands Retirement Fund.

 

(r)        “GHLI trust fund” means the CNMI government group health and life insurance trust fund. The GHLI trust fund shall be segregated from other funds and held in trust and administered by the Administrator under the fiduciary supervision of the Board.

 

(s)        “GHLI” means the CNMI government group health and life insurance program.

 

(t)        “Government” means the CNMI government, its departments, agencies, instrumentalities, public corporations, municipal governments, and other CNMI government entities and autonomous agencies.

 

(u)        “Non-participating or non-preferred provider” means a provider of services who, when rendering a service covered by the plan to an enrollee, does not have an agreement with the plan to charge only a specified amount.

 

(v)        “Open season or open enrollment” means that period of time, designated by the Administrator, during which employees may apply for enrollment in the program for themselves and their dependents and during which subscribers may apply to change their benefit and enrollment options in the program.

 

(w)       “Participating or preferred provider” means a provider of services who, when rendering a service covered by this plan to an enrollee, agrees with the plan to collect not more than a specified amount.

 

(x)        “Permanently disabled” with respect to a subscriber’s dependent means the dependent is:

(1)        Incapable of self support because of a mental or physical handicap; and

(2)        Reliant upon the subscriber for financial support and maintenance.

 

(y)        “Plan” means the CNMI Government’s Group Health Insurance Program group health insurance policy. This term may be used interchangeably with the term program.

 

(z)        “Plan document” means the CNMI Group Health Insurance Program group health insurance policy and any supplements or riders providing any changes to coverage.

 

(aa)      “Plan year” means the fiscal year (October 1 through September 30). For a new enrollee, the plan year begins when such enrollee’s coverage begins and continues through the following September 30.

 

(bb)      “Premium” means the total amount of contributions required to be paid into the GHLI trust fund for participation of an enrollee in the program.

 

(cc)      “Program” means the CNMI Government’s Group Health Insurance Program group health insurance policy. This term may be used interchangeably with the term plan.

 

(dd)     “Retiree” means a former employee who is receiving annuity payments through the Northern Mariana Islands Retirement Fund as a result of service, age or disability. The term “retiree” does not include a spouse or former spouse or domestic partner of a retiree receiving an annuity as a result of a domestic relations court order or any other individual receiving an annuity as a consequence of a relationship with a retiree.

 

(ee)      “Spouse” means an employee’s or retiree’s current legal husband or wife from whom the employee or retiree is not legally separated.

 

(ff)       “Subscriber” means any employee or retiree who is enrolled in the program and in whose name the enrollment is registered.

 

(gg)      “Survivor” means the spouse or domestic partner of a deceased employee or retiree who is receiving a survivor annuity benefit under the laws governing the NMI Retirement Fund (which requires that they have not remarried).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The original regulation contained no subsection (f). The Commission corrected the designation of subsections pursuant to 1 CMC § 3806(a). The original paragraphs of subsection (m) were undesignated. The Commission designated them as subsections (m)(1) and (m)(2).The Commission corrected the capitalization of the words “domestic partner,” “subscriber,” “dependent,” “employee,” “retiree,” and “spouse” throughout the section pursuant to 1 CMC § 3806(f). The Commission struck the figures “18” from subsection (j)(1) and “2” from subsection (j)(2) pursuant to 1 CMC § 3806(e).

 

Part 100 -       Eligibility

 

§ 110-30.1-101            Employees Generally

 

All employees are eligible to apply to enroll themselves and their dependents in the program.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

§ 110-30.1-105            Retiring Employees

 

(a)        Upon retiring from government service, employees who are subscribers shall be provided with an option, to be exercised within six months of the date of retirement, to continue their Commonwealth government health insurance coverage under the same group terms and conditions as that government coverage, if any, offered each fiscal year to Commonwealth government employees. Any employee who is a subscriber at the time of retirement who declines to exercise their option to continue health insurance within six months of the date of their retirement, or who exercises the option and subsequently cancels their health insurance coverage more than six months after the date of retirement, shall not be entitled to reapply for coverage thereafter.

 

(b)        Employees who are not subscribers at the time of their retiring from government service shall not be allowed to apply for Commonwealth government health insurance coverage at that time or at any time subsequent to their retirement.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The original paragraphs in this section were undesignated. The Commission designated them as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of the words “employee” and “subscriber” pursuant to 1 CMC § 3806(f). The pre-2012 version of this section was entitled “Dependent Children.”

 

§ 110-30.1-110            Dependents of a Subscriber Who Are Otherwise Eligible On Their Own Account

 

If a subscriber should terminate coverage for a dependent and that dependent would otherwise have been eligible to have been enrolled on their own account (either as an active employee or upon their own retiree) had they not already been an enrollee, the dependent may enroll on their own account, provided they do so within thirty days of their coverage being terminated. This section shall apply in the event of a divorce resulting in the loss of coverage as a dependent, when the dependent otherwise was eligible to enroll on their own account.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was entitled “Notice of Enrollment Rights.” The Commission corrected the capitalization of the words “subscriber,” “dependent,” and “enrollee” pursuant to 1 CMC § 3806(f). The Commission struck the figure “30” pursuant to 1 CMC § 3806(e).

 

§ 110-30.1-115            Enrollment of Newly Acquired Dependents

 

Within thirty days of a subscriber acquiring a new dependent as a result of marriage, newly formed domestic partnership, birth, adoption or placement for adoption, newly acquired stepchild, or appointment by a court of the subscriber as legal guardian or order by the court that a subscriber provide health insurance for another as their child, the subscriber may submit an Enrollment Change Form seeking to add the dependent outside of an open season. If such form is submitted more than thirty days after the new dependent is acquired, the enrollment shall be denied and the subscriber may then only add the dependent during an open season.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 29 Com. Reg. 26692 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26657 (July 18, 2007); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The Commission corrected the capitalization of the words “subscriber,” “dependent,” “domestic partnership,” and “open season” pursuant to 1 CMC § 3806(f). The Commission struck the figure “30” pursuant to 1 CMC § 3806(e). The pre-2012 version of this section was entitled “Retiring Employees.”

 

§ 110-30.1-120            Spouse and Domestic Partner’s Right to Enroll Upon Death of Employee or Retiree

 

A spouse or domestic partner who was an enrollee on the date of the death of their spouse employee or retiree subscriber, is eligible to enroll in the program for himself or herself and the deceased subscriber’s dependents within 30 days of the death of spouse and to remain enrolled, if, and only for as long as, they continue to qualify for and receive a survivor’s benefit from the NMI Retirement Fund. The survivor may not enroll his or her own dependents that are not also the dependents of the deceased spouse.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 29 Com. Reg. 26692 (Aug. 17, 2007); Amdts Proposed 29 Com. Reg. 26657 (July 18, 2007); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The Commission corrected the capitalization of the words “spouse,” “domestic partner,” “enrollee,” “employee,” “retiree,” “subscriber,” “dependents,” and “survivor” pursuant to 1 CMC § 3806(f). The pre-2012 version of this section was entitled “Retirees and Their Dependents in Prior Program.”

 

§ 110-30.1-125            Proof of Eligibility

 

The Administrator may require such documentation as he or she deems necessary to verify the eligibility of any person. If satisfactory documentation is received by the deadline specified by the Administrator, the person will be considered eligible as of the date determined by the Administrator. If satisfactory documentation is not received by the deadline specified by the Administrator, the person will not be considered eligible and will not be able to be enrolled until re-application at the next Open Season.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The Commission corrected the capitalization of the words “open season” pursuant to 1 CMC § 3806(f). The pre-2012 version of this section was entitled “Retirees Not Enrolled in Government Plan.”

 

§ 110-30.1-130            Documentation Required for Permanently Disabled Dependent Enrollment

 

(a)        When a subscriber includes a permanently disabled dependent on their Application/Change Form, the subscriber shall also provide the following documentation:

(1)        A physician’s certification that the dependent has a mental or physical handicap that prevents them from being able to self-support; and

(2)        Proof that the dependent is reliant upon the subscriber for financial support and maintenance, including copies of tax returns in which the subscriber claims the dependent and an affidavit of the subscriber attesting to such dependency.

 

(b)        In the case of a permanently disabled child, the above listed documents must be provided to the Administrator within 30 days after the permanently disabled child attains age 26 in order for coverage to continue.

 

(c)        The Administrator may request a subscriber re-certify a dependent’s permanent disability, but not more frequently than annually. The Administrator may terminate the coverage of a permanently disabled dependent for failure of the Subscriber to provide the required documents within a reasonable time.

 

(d)       The subscriber shall have an affirmative duty to inform the Administrator of any change of status that would disqualify a permanently disabled dependent from continued coverage including: the end of financial dependence on the subscriber, or the end of mental or physical handicap that prevents the dependent from being able to self-support.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated them as subsections (a) through (d) pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of the words “subscriber” and “dependent” pursuant to 1 CMC § 3806(f). The pre-2012 version of this section was entitled “Spouse Enrolled in this Program on Death of Retiree.”

 

§ 110-30.1-135            Documentation Required for Spouse or Domestic Partner Enrollment

 

When a subscriber includes a spouse or domestic partner on their Application Form or on an Enrollment Change Form, the subscriber shall also provide the following documentation:

 

(a)        For a spouse - a marriage certificate; or

 

(b)        For a domestic partner - an Affidavit of Domestic Partnership executed by both domestic partners before a Fund employee or an official notary. Such Affidavit shall certify satisfaction of all the requirements contained in the definition of domestic partner.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The Commission corrected the capitalization of the words “subscriber,” “spouse,” and “domestic partner” pursuant to 1 CMC § 3806(f). The pre-2012 version of this section was entitled “Survivors and Dependents in Prior Program.” Former sections 110-30.1-140 through 110-30.1-170 were repealed in 2012.

 

Part 200 -       Enrollment

 

§ 110-30.1-201            Enrollment Categories

 

(a)        The available enrollment categories are:

(1)        Single, refers to the subscriber only. Only one enrollee may be covered under this category of the plan;

(2)        Couple, refers to a subscriber and one dependent. The dependent may be a spouse, domestic partner or eligible child, but a maximum of two total enrollees (including the subscriber) may be covered under this category of the plan.

(3)        Family, refers to a subscriber with two or more dependents. The dependents may be a spouse, or domestic partner and eligible children or the dependents may all be eligible children. There is no limit to the number of enrollees that may be covered under this category of the plan, provided all enrollees are eligible.

 

(b)        Categories in chart form:

 

Single

Employee only

1 total enrollee

Couple

Employee + Spouse

or

Employee + Domestic Partner

or

Employee + Eligible Child

2 total enrollees

Family, Not Including a Domestic Partner

Employee + Spouse + 1 or more Eligible Children

or

Employee + 2 or more Eligible Children

No limit to the number of enrollees

Family, Including a Domestic Partner

Employee + Domestic Partner + 1 or more Eligible Children

No limit to the number of enrollees

 

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was entitled “Enrollment Options and Categories.” The 2012 amendments changed the numbering scheme of Part 200.

 

§ 110-30.1-205            Enrollment Process

 

A person wishing to enroll himself or herself and/or his or her dependents in the program must file an application form with the Administrator, specifying the enrollment category they desire and listing the dependents for which they seek coverage. A subscriber wishing to change his or her enrollment or that of his or her dependents must file an Enrollment Change Form with the Administrator. Both forms are available at the GHLIP office and any other office designated by the Administrator.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-210            New Employee Enrollment Period and Effective Date of Coverage

 

A new employee may apply, for himself or herself and his or her dependents, to enroll in the program within 30 days after his or her date of hire. Enrollment will be effective as of the first day of the pay period following approval of the application.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-215            Other Employee Enrollment Period and Effective Date of Coverage

 

(a)        Employees, who are not new employees, may only apply to enroll themselves or their dependents (other than newly acquired dependents) during an open season. If an employee applies to enroll during an open season, such enrollment will be effective as of the date specified by the Administrator.

 

(b)        By submitting an Enrollment Change Form, a subscriber may enroll a newly acquired dependent within thirty days of acquiring the new dependent as a result of marriage, newly formed domestic partnership, birth, adoption or placement for adoption, newly acquired stepchild, or appointment by a court of the subscriber as legal guardian or order by the court that a subscriber provide health insurance for another as their child. If such form is submitted more than thirty days after the new dependent is acquired, the enrollment shall be denied and the subscriber may then only add the dependent during an open season.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

Commission Comment: The paragraphs of this section were undesignated in the original regulation. The Commission designated them as subsections (a) and (b). The Commission struck the figure “30” in subsection (b) pursuant to 1 CMC § 3806(e).

 

§ 110-30.1-220            Survivors’ Enrollment Period After Death of Employee or Retiree

 

(a)        A spouse or domestic partner who was an enrollee on the date of the death of their spouse employee or retiree subscriber may enroll for himself or herself and the deceased subscriber’s dependents, within 30 days of the death of spouse*. The survivor may remain enrolled, only for as long as they continue to qualify for and receive a survivor’s benefit from the NMI Retirement Fund. The survivor may not enroll his or her own dependents that are not also the dependents of the deceased spouse.

 

(b)        Survivor enrollment will be effective from the first date covered by the survivor’s benefit, or from the date of application, whichever is later. A survivor may apply to enroll any newly acquired dependent only if such dependent is a child of the deceased spouse subscriber.

 

* So in original.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

Commission Comment: The paragraphs of this section were undesignated in the original regulation. The Commission designated them as subsections (a) and (b). The Commission inserted an apostrophe in the section title pursuant to 1 CMC § 3806(g).

 

§ 110-30.1-225            Special Enrollment under Qualified Medical Child Support Orders

 

A child identified in a qualified medical child support order as an eligible dependent will be accepted upon submission of a certified copy of the court order, without regard to any enrollment season restrictions.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-230            Medicare Part A/Mandatory Enrollment

 

It is a condition of enrollment in the program that if any enrollee is eligible for Medicare Part A at no cost, such enrollee must enroll in Medicare Part A.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-235            Election to Terminate/Form for Retirees and Survivors

 

Any retiree or survivor wishing to terminate his or her enrollment may do so by signing a form prescribed by the Administrator acknowledging that he or she understands that termination of their enrollment will preclude them from re-enrolling at a later date, unless they become eligible as the dependent of another.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-240            Identification Cards

 

The Administrator, or private insurance carrier holding the policy may provide each enrollee with an identification card.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-245            Retroactive Enrollments and Termination

 

Retroactive enrollments and terminations are not allowed unless specifically provided for in the policy.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-250            Approval of Enrollment or Enrollment Change

 

Nonwithstanding any other provision to the contrary, no enrollment or enrollment change will become effective without the approval of the Administrator. If the Administrator has not acted on an application form or enrollment change within 30 days of its receipt, the application for enrollment or enrollment change shall be deemed denied.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-255            No Guarantee of Enrollment

 

Employment by or retirement from the government does not guarantee enrollment or continued enrollment.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-260            Enrollment Denied

 

The Administrator may deny an application for enrollment because the applicant is ineligible, has filed fraudulent documents or for any other reason the Administrator deems in the best interest of the program.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

Part 300 -       Benefits

 

§ 110-30.1-301            Benefits Coverage

 

Benefits coverage shall be pursuant to the terms of the GHLIP group health insurance policy as it is negotiated from year to year.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was entitled “Basics.”

 

§ 110-30.1-305            Summary Chart (Table) on Changing Enrollment/Benefits

 

The following table summarizes some basic rules for changing enrollment options:

 

Events which prompt enrollment or change in enrollment

From not enrolled to enrolled

From single to couple

From single to family

From family to single

From family to couple

Time during which an application must be filed with the Administrator

Open season

Yes

Yes

Yes

Yes

Yes

Time of Open Season is specified by the Administrator each year.

Acquisition of spouse, domestic partner, child or other dependent

No

Yes

Yes

No

No

Within 30 days of acquisition of new dependent

Divorce, legal separation, annulment, end of domestic partnership, death of a spouse or child, a child’s loss of dependent status

No

No

No

Yes

Yes

Anytime

Change in status from spouse to survivor of retiree or employee

Yes

Yes

Yes

Yes

Yes

Within 30 days of the date of death of employee or retiree

 

Modified 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was entitled “Chart.”

 

§ 110-30.1-310            Additional Rules for Changing Enrollment Categories (Adding or Deleting Dependents)

 

In addition to the rules outlined elsewhere, the following rules also apply to changing enrollment categories:

 

(a)        A subscriber may cancel his or her enrollment and/or that of any of his or her dependents at any time;

 

(b)        A subscriber may change between high and low coverage levels only during open season;

 

(c)        Changes to enrollment categories made pursuant to a change in family status must be consistent with such change in status, and the enrollee must provide any documentation required by the Administrator to substantiate such change in status;

 

(d)       If a subscriber changes enrollment categories, the new benefits will apply only to services received after the change is effective;

 

(e)        The effective date of any change in enrollment will be the first day of the government’s next pay period for an employee subscriber or, for retiree and survivor subscribers, the first day of the next benefit pay period, unless the change is made during an open season, in which case the change will be effective as the date specified by the Administrator.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The Commission inserted an apostrophe in the word “government’s” in subsection (d) pursuant to 1 CMC § 3806(g). The pre-2012 version of this section was entitled “Inpatient Hospital Room and Board Benefits.”

 

§ 110-30.1-315            Enrollment Change Form

 

To change enrollment categories, the subscriber must file an Enrollment Change Form with the Administrator.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was entitled “Other Benefits.”

 

§ 110-30.1-320            Administrator Approval Required

 

No change in enrollment category will be effective without the approval of the Administrator. If the Administrator has not acted upon an application for change in enrollment category within thirty days of its receipt, the application shall be deemed denied.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011).

 

Part 400 -       Coinsurance and Co-payments

 

§ 110-30.1-401            Required Coinsurance and Co-payments

 

The required coinsurance and co-payments shall be pursuant to the terms of the GHLIP group health insurance policy as it is negotiated from year to year.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Office Visit.” Former sections 110-30.1-405 through 110-30.1-430 were repealed in 2012.

 

Part 500 -       Limitations and Exclusions

 

§ 110-30.1-501            Limitations and Exclusions of Coverage

 

The limitations and exclusions of coverage shall be pursuant to the terms of the GHLIP group health insurance policy as it is negotiated from year to year.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Inpatient Limitations.”

 

§ 110-30.1-505            Workers’ Compensation; Employer Liability Law

 

(a)        The plan will not pay benefits for any services when the enrollee is entitled to receive payment of medical expenses, disability benefits or compensation for injury or illness (or forfeits his rights thereto) under any workers’ compensation or employers liability law. The enrollee has the affirmative duty to inform the Administrator if they are seeking workers’ compensation benefits.

 

(b)        In the event the Enrollee formally appeals the denial of a claim for workers’ compensation, the enrollee shall notify the Administrator of such appeal. The plan will then provide benefits under this plan, but such benefits shall be considered an advance or loan to the enrollee. If the claim is declared eligible for benefits under workers’ compensation or employers liability law or if the enrollee reaches a compromise settlement of the workers’ compensation claim, the enrollee agrees to repay the advance or loan the plan has the right of subrogation*.

 

* So in original.

 

Modified 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The paragraphs of this section were undesignated in the original regulation. The Commission designated them as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission inserted an apostrophe after the word “workers” in the section title pursuant to 1 CMC § 3806(g). The pre-2012 version of this section was titled “Physical Exam Limitation.”

 

§ 110-30.1-510            Services Provided Without Charge

 

The plan will not pay benefits for any services:

 

(a)        When services for an injury or illness are provided without charge to the enrollee by any federal, state, territorial, municipal, or other government instrumentality or agency, or

 

(b)        When services for an injury or illness would have been provided without charge or collection but for the fact that the person is an enrollee under this plan.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Physical and Occupational Therapy and Chiropractic Limitations.”

 

§ 110-30.1-515            False Statements and Misrepresentations

 

The plan will not pay any benefits, to the extent that such benefits are payable, by reason of any false statement or other misrepresentation made in an application for membership or in any claims for benefits. If the plan pays such benefits before learning of any false statement, the subscriber agrees to reimburse the plan for such payment.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Surface Ambulance Limitation.”

 

§ 110-30.1-520            Provider, Enrollee Negligence

 

The plan is not an insurer against nor liable for the negligence or other wrongful act or omission of any provider, providers* employee, or other person or for any act or omission of any enrollee.

 

* So in original.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Home Health Limitation.”

 

§ 110-30.1-525            Availability and Quality of Providers Not Guaranteed

 

The plan does not guarantee the availability or quality of any medical service provider, including preferred providers.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Mental Health/Substance Abuse Limitations.”

 

§ 110-30.1-530            Acts of War

 

The plan will not pay benefits for services required in the treatment of an injury or illness that results from an act of war or armed aggression, whether or not a state of war legally exists, or that occurs during a period of active duty of any armed force of any state or nation.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Proposed 28 Com. Reg. 25589 (Apr. 17, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was entitled “Sleep Disorder Limitations.” Former sections 110-30.1-535 through 110-30.1-550 were repealed in 2012.

 

Part 600 -       Premiums

 

§ 110-30.1-601            Premiums

 

The premiums charged for each enrollment category shall be pursuant to the terms of the GHLIP group health insurance policy as it is negotiated from year to year.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of Part 600 was titled “Exclusions.” The pre-2012 version of this section was entitled “Introduction.”

 

§ 110-30.1-605            Subscriber Contributions

 

The subscriber or survivor shall be responsible for one half of the premium for the subscriber’s or survivor’s enrollment category. All employee, retiree, and survivor contributions shall be made through deductions from the employee’s paycheck or retiree’s or survivor’s benefit check as the case may be. An employee on leave without pay shall pay 100% of the premium to the GHLI trust fund in advance of the due date of such premiums. If a retiree’s or survivor’s benefit is insufficient to cover one half of the premium, the retiree or survivor shall pay the amount by which their benefit is short from covering the premium, to the GHLI trust fund in advance of the due date of such premiums.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Workers’ Compensation; Employer Liability Law.”

 

§ 110-30.1-610            Government/Fund Contributions

 

The government shall be responsible for one half of the premium for their employees’ enrollment categories. The government shall not pay a contribution toward health insurance of its employees other than towards the GHLIP coverage. The NMI Retirement Fund shall be responsible for one half of the premium for the retirees’ and survivors’ enrollment categories.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was entitled “Service Provided without Charge.”

 

§ 110-30.1-615            Payment; When Made

 

(a)        Within five working days following the close of each pay period, each autonomous agency, public corporation and other government entity that processes its own payroll, shall remit to the GHLI trust fund the total premiums due for its employees, including contributions deducted from employees’ paychecks. Also within five working days following the close of each pay period, the Department of Finance shall remit to the GHLI trust fund the total premiums due for its employees, including contributions deducted from employees’ paychecks.

 

(b)        Within five working days following the close of benefits pay period, the NMI Retirement Fund shall remit to GHLI trust fund the total premiums due for retirees and survivors, including contributions deducted from benefit paychecks.

 

(c)        If such premiums are not received by the GHLI trust fund by the 10th working day following each pay period or benefit pay date, interest will be charged on the amount due at a rate determined by the Administrator.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The paragraphs of this section were undesignated in the original regulation. The Commission designated them as subsections (a) through (c) pursuant to 1 CMC § 3806(a). The pre-2012 version of this section was titled “False Statements and Misrepresentations.”

 

§ 110-30.1-620            List of Enrolled Employees

 

With each remittance of premiums, each autonomous agency, each public corporation, any other government agency that processes its own payroll, the Department of Finance, and the NMI Retirement Fund shall submit to the Administrator a list of all enrolled employees, retirees and survivors for whom premium is being paid. This list will be the definitive identification of all enrollees in the program.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Provider, Enrollee Negligence.”

 

§ 110-30.1-625            List of Enrolled Dependents

 

The private insurance carrier shall maintain a current list of all enrolled dependents and shall seek to verify continued eligibilities of these dependents on an annual basis. The subscriber shall have an affirmative duty to inform the private insurance carrier, through the Administrator, of any change to circumstances that causes any of the subscriber’s dependents to lose eligibility.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Availability and Quality of Providers Not Guaranteed.”

 

§ 110-30.1-630            Full and Timely Payment

 

It is the responsibility of each subscriber or survivor and each paying entity to make certain that premiums are fully and timely paid.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Acts of War.”

 

§ 110-30.1-635            Payment Receipt

 

The Administrator will issue a receipt of payment to each subscriber or survivor submitting premiums directly to the GHLI trust fund.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 28 Com. Reg. 25883 (June 19, 2006); Amdts Proposed 28 Com. Reg. 25715 (May 19, 2006); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Excluded Charges and Services.”

 

§ 110-30.1-640            Deposit of Premiums Into GHLI Trust Fund

 

The Administrator shall cause all premiums received to be deposited into the GHLI trust fund and shall maintain such premiums there until transmission to the private insurance carrier when due.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Coverage Determination.”

 

§ 110-30.1-645            Review of Program

 

The CNMI Government may engage an experienced health insurance actuary or underwriter to review the financial status of the program, to review the plan document and these regulations, and to make recommendations for changes to improve the program.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Custodial or Domiciliary Care.”

 

Part 700 -       Coordination of Benefits and Double Coverage

 

§ 110-30.1-701            Primary or Secondary Payor Determination

 

When an enrollee is covered by another health insurance plan, including Medicare, the Coordination of Benefits Guidelines established by the National Association of Insurance Commissioners (NAIC) will be used to determine whether the program will be the primary or secondary payor. These guidelines have included the following provisions:

 

(a)        The plan covering the enrollee as an active employee will be the primary payor;

 

(b)        If a child is covered under two plans, the plan of the parent whose birthday occurs first in the calendar year will be the primary payor;

 

(c)        If other guidelines fail to establish which plan is the primary payor, the plan covering the enrollee for the longer time will be the primary payor.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 title of Part 700 was “Health Care Providers.” The pre-2012 version of this section was titled “Eligible Providers.”

 

§ 110-30.1-705            Double Coverage Payment Provision

 

If the program is the primary payor, it will pay for covered benefits in accordance with the plan document. If the program is the secondary payor, it will pay a reduced amount, so that, when added to the amount payable by the other plan, the total amount paid by both plans will not exceed the provider’s charges for covered benefits. In no event will the amount paid by the program exceed the allowable expenses it would have paid had it been the primary payor. Also, in no event will the program pay for non-covered benefits.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “No Program/Provider Relationships.”

 

§ 110-30.1-710            Information on Other Plans of Subscriber

 

(a)        The double coverage provision applies whether or not a claim is filed under the other plan. As a condition of enrollment, a subscriber agrees to provide information as to other health insurance that he or she and his or her dependents may have, and authorizes the Administrator to obtain information as to benefits available from the other plan, and to recover overpayment, should they occur, from the other plan, on behalf of the subscriber and any of his or her enrolled dependents.

 

(b)        For purposes of enforcing or determining the applicability of this part, the subscriber, on his or her own behalf or on behalf of his or her dependents:

(1)        Will disclose all coverage under any other plan;

(2)        Consents to the plan releasing to any part or obtaining from any party any information which the plan deems necessary for purposes of coordination of benefits;

(3)        Authorizes direct reimbursement to or from any other plan when such direct payment is appropriate and necessary to facilitate the coordination and adjustments of the plans and other plans payments under this section; and

(4)        Will, upon request, execute and deliver such instruments or documents as may be required to satisfy the intent of this section.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Provider Negligence.”

 

§ 110-30.1-715            Special Provisions Regarding Medicare and No-fault Motor Vehicle Insurance Coverage

 

(a)        The federal Medicare program will be considered the primary plan unless the enrollee is an active employee covered under the plan. Where an employee or dependent is covered by both Medicare and this plan, applicable federal statutes will determine which plan is primary. If the enrollee reaches the eligible age or has a condition which makes him or her eligible for coverage under the Medicare Act, as amended (title XVII of the Social Security Act of 1965), or is receiving Social Security income benefits, the enrollee must enroll in all portions of the Medicare program open to the enrollee at no cost and sign and maintain in effect the necessary releases.

 

(b)        Any no-fault motor vehicle insurance coverage will be considered the primary plan and its benefits will be applied first. Before the plan pays benefits under this plan for any injury covered by no-fault insurance, the plan will list the medical expenses that no-fault covers according to the date on which the expenses were incurred. The plan will add up the no-fault expenses for each successive day until the day when the no-fault benefit maximum is exhausted. From that day on, covered services received by the enrollee will be eligible for payment under this plan. The plan will follow this procedure even when the no-fault insurer pays all of its benefits for non-medical expenses or when the actual order of payment differs.

 

(c)        If another person caused the motor vehicle accident and the enrollee may recover damages from that person, any benefits for which the enrollee may be eligible shall be subject to the provisions of this part. The plan is not liable to pay any benefits for injuries caused by another person, but may assist the enrollee by providing coverage he or she would have received as a benefit after the no-fault benefits have been exhausted as described in subsection (b) above, subject to the right of subrogation.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Preferred or Participating Providers Network.”

 

§ 110-30.1-720            Double Coverage under This Plan

 

An enrollee may not seek double coverage by being a subscriber, and also being the dependent of another subscriber under this plan. Only one category of enrollment and coverage will be permitted for an individual.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Provider Directory.”

 

Part 800 -       Subrogation

 

§ 110-30.1-801            Recovery of Damages for Injury or Illness Caused by Another

 

If an injury or illness of an enrollee is or may have been caused by another person or party and the enrollee has or may have a right to recover damages therefore* against that person or party, the plan shall not be liable to pay any benefits provided under the policy. However, upon the execution and delivery to the plan of all papers it requires to secure its rights of reimbursement, the plan may pay benefits in connection with such injury or illness. If an enrollee is injured or infected through the act or omission of another person or entity and recovers damages from the other person or entity, the enrollee shall reimburse the plan for the cost of the benefits provided by the program in treating such condition. The amount of such reimbursement must equal the amount of the recovery or the programs* cost for such benefits, whichever is less. If the plan pays any benefits because of such injury or illness, the plan shall have a lien against any recover to the extent of such payments. Such lien may be filed with such other person or party, his or her agent or insurance company, or the court; and such lien shall be satisfied from any recovery received by the enrollee.

 

* So in original.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of Part 800 was titled “Premiums.” The pre-2012 version of this section was titled “Premiums.”

 

§ 110-30.1-805            Damages Not Recovered; Right of Subrogation

 

If there is no recovery of damages, the plan shall be subrogated to the enrollees* rights against the wrongdoer to the extent of the cost of the benefits provided by the plan, including the right to sue in the enrollee’s name and to compromise the claim in order to indemnify the plan for amounts paid.

 

* So in original.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Subscriber Contributions.”

 

§ 110-30.1-810            Assignment of Claim Payment

 

It is a condition of enrollment in the plan that each enrollee agrees that he or she, his or her guardian, his or her survivor, and his or her estate will execute and deliver an assignment of claim payment form, and any other necessary forms prescribed by the Administrator, to the Administrator upon request, and shall render any necessary assistance, other than pecuniary, to enable the plan to secure the rights provided by this part.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Government Contributions.” Former sections 110-30.1-815 through 110-30.1-870 were repealed in 2012.

 

Part 900 -       Administration

 

§ 110-30.1-901            Responsibilities of the Board

 

The Board has fiduciary responsibility with respect to the collection and remittance of employer and employee/retiree/survivor premiums. The Board serves as a fiscal and administrative agent of the CNMI government with respect to the GHLIP. The Board will administer and manage the program in accordance with the plan document and these regulations.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of Part 900 was titled “Claims and Payment for Services.” The pre-2012 version of this section was titled “Covered Services.

 

§ 110-30.1-905            Administrators Authority

 

(a)        The Administrator has the authority to make decisions, as necessary for the optimal functioning of the program, within the authority granted him by the Board in these regulations. The Administrator is responsible for the daily functions of the program including, but not limited to, receiving and depositing premiums, remitting premiums as required, and facilitating the enrollment of subscribers and changes to enrollment categories requested by subscribers.

 

(b)        Subject to the review and oversight of the Board, the Administrator shall have all discretionary powers necessary to administer the program and control its operation in accordance with the terms of the plan document, these regulations and applicable law, including but limited to the power to

(1)        Obtain insurance through the RFP process;

(2)        Negotiate the insurance policy for the program;

(3)        Set the administrative fee which shall be added to the premium charged, to cover administrative expenses of the GHLIP;

(4)        Interpret the provisions of this plan document;

(5)        To* determine any question relating to the administration or operation of the program;

(6)        Make and enforce decision regarding who is eligible for benefits and when they may enroll or change their enrollment.

 

(c)        All decisions of the Administrator, any actions taken or omitted by the Administrator in respect of the program and within the powers granted by the Act or under this plan document, and any interpretation of this plan document by the Administrator shall be conclusive and binding on all persons other than the Board, and shall be given the maximum possible consideration allowed by law.

 

* So in original.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The initial paragraph of this section was undesignated in the original regulation. The Commission designated it as subsection (a) pursuant to 1 CMC § 3806(a). The Commission corrected the semicolon at the end of subsection (b)(6) to a period pursuant to 1 CMC § 3806(g). The pre-2012 version of this section was titled “Filing of Claims (General Rules).”

 

§ 110-30.1-910            Maintenance of Program Records

 

The Administrator will create and maintain, or facilitate the creation and maintenance by another party, the program records necessary to implementation of the program.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Payment of Claims (General Rules).”

 

§ 110-30.1-915            Contracts for Insurance and Administration Authorized

 

The Board, acting through the Administrator, has the authority to contract with private insurance carriers and/or administrators to insure and/or administer the program.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Filing of Claims by Providers.”

 

§ 110-30.1-920            GHLI Trust Fund

 

(a)        The GHLI trust fund was established for holding premiums, administrative service charges and any investment earnings thereon.

 

(b)        Moneys in the GHLI trust fund are to be expended for the payment of insurance premiums, reasonable costs of administration, and other allowable expenses related to the program.

 

(c)        The Administrator shall maintain the GHLI trust fund at any recognized financial institution whose deposits are insured by an agency of the U.S. federal government. However, the full amount of money held in the GHLI trust fund need not be so insured.

 

(d)       The Administrator, under the direction of the Board, shall have sole and exclusive expenditure authority over the GHLI trust fund.

 

(e)        The Administrator shall establish an accounting system for the GHLI trust fund in accordance with generally accepted governmental accounting standards and issue accounting reports to the Board as required but at least semiannually.

 

(f)        The Administrator shall report to the CNMI Legislature and Governor on the financial status of the GHLI trust fund within sixty days after the end of each fiscal year.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Payment of Claims to Providers.” Former sections 110-30.1-925 through 110-30.1-965 were repealed in 2012.

 

Part 1000 -     Termination

 

§ 110-30.1-1001          When Termination Occurs

 

Enrollment in the program will terminate upon the Plan’s notification that:

 

(a)        For an enrollee if he/she no longer meets the definition of enrollee;

 

(b)        For an enrollee if such individual files false documents to establish eligibility;

 

(c)        For an enrollee if the enrollee dies;

 

(d)       For all enrollees if the government terminates the program;

 

(e)        For a subscriber if the subscriber terminates his or her enrollment;

 

(f)        For a dependent if the subscriber’s enrollment terminates;

 

(g)        For a dependent if the subscriber terminates the enrollment of the dependent;

 

(h)        For a survivor and all dependents of the former subscriber if the survivor remarries;

 

(i)         For an employee, 30 days after the employee ceases to be employed by the government, provided the entire premium for coverage after the end of employment is paid, otherwise upon termination of employment, unless the former employee qualifies as a retiree or dependent of another;

 

(j)         For a spouse on the first day of the month following termination of the marriage, other than through death of the subscriber;

 

(k)        For a domestic partner on the first day of the month following termination of the domestic partnership, other than through death of the subscriber;

 

(l)         For a child if he/she no longer meets the definition of child;

 

(m)       For a child if he/she no longer meets the definition of eligible child;

 

(n)        For a dependent if he/she no longer meets the definition of dependent.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The Commission corrected the period at the end of subsection (i) to a semicolon pursuant to 1 CMC § 3806(g). The pre-2012 version of Part 1000 was titled “Managed Care.” The pre-2012 version of this section was titled “Managed Care Program Reviews.”

 

§ 110-30.1-1005          Effective Date of Termination

 

Except as specified* provided elsewhere, all terminations of enrollment will be effective as of the first day of the pay period or semi-monthly annuity payment period following the event causing the termination.

 

* So in original.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Benefits Reductions.”

 

§ 110-30.1-1010          Termination of Subscriber Terminates Dependents; Re-enrollment

 

If a subscriber’s enrollment terminates, coverage for all of such subscriber’s enrolled dependents also terminates as of the subscriber’s date of termination, except as specifically provided for survivors elsewhere in these regulations. A subscriber whose enrollment has terminated will not be eligible to re-enroll until an open season is declared or unless the subscriber otherwise becomes eligible. Notwithstanding the previous sentence, if the subscriber’s enrollment terminates because of non-payment or untimely payment of subscriber contributions while the subscriber is on leave without pay pursuant to the Family and Medical Leave Act of 1993, or if the subscriber qualifies under the Uniformed Services Employment and Reemployment Rights Act of 1993, the provisions of those acts will govern.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Pre-admission Review.”

 

§ 110-30.1-1015          Notification to Administrator of Loss of Dependent Status

 

If an enrolled dependent no longer meets the definition of dependent, the subscriber must ensure that the Administrator is notified within 30 days of the date the change occurred. If the Administrator is not so notified, payment of benefits for such dependent* will be denied retroactively to the date the change occurred, even though premiums were paid, and premiums will not be refunded. Also, any claim filed on behalf of such dependent after the date the dependent no longer met the definition of dependent, may be considered a false claim.

 

* So in original.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was titled “Surgical Review.”

 

§ 110-30.1-1020          CNMI Legislature; Power to Abolish or Amend Program Law

 

The CNMI Legislature has the power to abolish the program or to amend the law creating and governing the program at any time.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001).

 

Commission Comment: The pre-2012 version of this section was entitled “Inpatient Review.” Former sections 110-30.1-1025 through 110-30.1-1030 and Parts 1100 through 1900 were repealed in 2012.

 

Part 2000 -     Reconsideration and Appeals

 

§ 110-30.1-2001          Request for Reconsideration of Denial

 

If an application for enrollment, enrollment change or continued enrollment is denied in whole or in part for reasons other than for failing to meet a stated time deadline, or if adverse action is otherwise taken against a subscriber, the subscriber or the subscriber’s representative may submit a written request for reconsideration to the Administrator within thirty days of the notice of denial is issued or other adverse action is taken. The subscriber or subscriber’s representative must state the reason he or she believes the denial was inappropriate and may submit any supporting data. A subscriber has the right to be represented by an attorney of his or her choosing, but shall bear the cost of the representation, or they may choose to represent themselves.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of Part 2000 was titled “Miscellaneous Provisions.” The pre-2012 version of this section was titled “Amendments.”

 

§ 110-30.1-2005          Informal Conference

 

The Administrator will discuss the request for reconsideration with the subscriber or subscriber’s representative at an informal conference either by telephone or in person. Such informal conference will be held within thirty days following the Administrator’s receipt of the written request for reconsideration if at all possible. The Administrator shall require the written consent of the subscriber or the subscriber’s adult dependents before discussing privileged or confidential medical information with the subscriber’s representative or any other non-privileged third party.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011); Amdts Adopted 25 Com. Reg. 20964 (Aug. 22, 2003); Amdts Proposed 25 Com. Reg. 20632 (July 15, 2003); Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997).

 

Commission Comment: The pre-2012 version of this section was titled “Effective Date.”

 

§ 110-30.1-2010          Administrator’s Decision on Reconsideration

 

The Administrator’s decision on reconsideration shall be in writing and sent to the subscriber or the subscriber’s representative, within thirty days of the informal conference. The Administrator shall state the specific reasons for his or her decision and refer to the provisions in the Act, the plan document or other rules or regulations on which the decision is based.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

Commission Comment: The Commission inserted an apostrophe in the word “Administrator’s” pursuant to 1 CMC § 3806(g).

 

§ 110-30.1-2015          Appeal of Administrator’s Decision to Board

 

A subscriber may appeal the Administrator’s decision on reconsideration to the Board within thirty days of the Administrator’s decision on reconsideration, pursuant to the Administrative Procedure Act [1 CMC §§ 9101, et seq.] and other applicable law, rules and regulations. Such appeal must be in writing and sent to the Chairman, Board of Trustees, NMI Retirement Fund, P.O. Box 501247, Saipan, MP 96950-1247. The subscriber shall also serve a copy of the appeal on the Administrator within the same time period.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

Commission Comment: The Commission corrected the capitalization of the word “subscriber” pursuant to 1 CMC § 3806(f).

 

§ 110-30.1-2020          Appeal Hearing

 

Upon receipt of a notice of appeal, the Board may appoint a hearing officer to hold a hearing on the record or, in an appropriate case, the Board may itself conduct a hearing on the record. The hearing shall be conducted according to the procedures set forth in the Administrative Procedure Act [1 CMC §§ 9101, et seq.]

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-2025          Appeal to Commonwealth Superior Court

 

Any further appeal or review of the Board’s decision shall be made to the Commonwealth Superior Court in accordance with 1 CMC §§ 9112(b) and 9113. If the court finds in favor of the plan, the subscriber shall be liable for attorney’s fees and other costs incurred by the plan in its defense. If the court finds in favor of the subscriber, the plan shall pay its own attorney’s fees and other costs and those of the subscriber.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

Commission Comment: The Commission corrected the capitalization of the word “subscriber” pursuant to 1 CMC § 3806(f).

 

Part 3000 -     Governing Laws

 

§ 110-30.1-3001          Program Administered in Accordance with CNMI and Certain Federal Laws

 

Notwithstanding any other provision of the plan document in this subchapter, the program will be administered in accordance with applicable CNMI and U.S. federal government laws, except in cases in which the CNMI has the authority to, and has chosen to, opt-out of such federal laws. Federal laws for which the CNMI may have opted-out include the Public Health Service Act, the Health Insurance Portability and Accountability Act of 1996, the Mental Health Parity Act of 1996, the Family and Medical Leave Act of 1993, the Uniformed Services Employment and Re-employment Rights Act of 1993, the Americans with Disabilities Act of 1990, and the Pregnancy Discrimination Act of 1979.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

§ 110-30.1-3005          Conflict Between Plan and Law

 

In case of conflict between the plan document or regulations and any CNMI or applicable U.S. federal law, the law will govern.

 

History: Adopted 34 Com. Reg. 32298 (Feb. 29, 2012) (repealing and replacing the subchapter); Proposed 33 Com. Reg. 32231 (Dec. 29, 2011); Emergency 33 Com. Reg. 32128 (Dec. 29, 2011).

 

Commission Comment: The former Appendix A, titled “Group Health and Life Insurance Trust Fund Drug Formulary,” was repealed by the 2012 amendments.


 

 

SUBCHAPTER 110-30.2

GROUP LIFE INSURANCE PROGRAM RULES AND REGULATIONS

 

Subchapter Authority: 1 CMC § 8424.

 

Subchapter History: Amdts Adopted 24 Com. Reg. 19633 (Oct. 30, 2002); Amdts Emergency and Proposed 24 Com. Reg. 19256 (June 17, 2002) (effective for 120 days from June 7, 2002); Amdts Proposed 23 Com. Reg. 18648 (Nov. 23, 2001); Amdts Adopted 19 Com. Reg. 15735 (Oct. 15, 1997) (repealing and re-promulgating the Group Health Insurance Program provisions of the May 1997 regulations); Amdts Proposed 19 Com. Reg. 15573 (Aug. 15, 1997); Adopted 19 Com. Reg. 15387 (May 15, 1997); Proposed 19 Com. Reg. 15106 (Feb. 15, 1997); Emergency 18 Com. Reg. 14326 (Sept. 15, 1996) (effective for 120 days from Sept. 9, 1996).

 

Commission Comment: PL 1-43 (effective Jan. 18, 1980), formerly codified at 1 CMC §§ 8301, et seq., originally created the Northern Mariana Islands Retirement Fund. PL 6-17 (effective May 7, 1989), the “Northern Mariana Islands Retirement Fund Act of 1988,” codified as amended at 1 CMC §§ 8301-8394, repealed and reenacted PL 1-43, as amended. See PL 6-17, ch. 1 § 8312; see also the commission comment to 1 CMC § 8301. PL 13-60 (effective Dec. 5, 2003), the “Retirement Integrity Assurance Act,” amended numerous provisions of the 1988 NMI Retirement Fund Act.

 

1 CMC § 8312 creates the Northern Mariana Islands Retirement Fund (NMIRF) as an autonomous agency and public corporation of the government of the Commonwealth of the Northern Mariana Islands. NMIRF, through a Board of Trustees, is empowered to establish, maintain and operate a retirement fund program for the public employees of the Commonwealth. 1 CMC § 8315(a). 1 CMC § 8315(g) (renumbered by PL 13-60) authorizes NMIRF to adopt rules and regulations as necessary for the exercise of the funds powers, performance of its duties and administration of its operations.

 

The group life and health insurance programs were originally administered by the Personnel Office. Executive Order 94-3 § 307(c) (effective Aug. 23, 1994) transferred the administration of the programs to the Department of Finance. See Executive Order 94-3, reprinted in the commission comment to 1 CMC § 2001; see also PL 10-19 § 1, reprinted in the commission comment to 1 CMC § 8421. PL 10-19 (effective June 21, 1996), codified at 1 CMC §§ 8421-8427, transferred the administration of the government life and health insurance programs to the NMIRF. See 1 CMC § 8421.

 

NMIRF first promulgated Group Health and Life Insurance Program Rules and Regulations in May 1997. Part VII of the May 1997 regulations, entitled “Group Life Insurance Program Description,” governed the CNMI government group life insurance program. See 19 Com. Reg. at 15116 (Feb. 15, 1997).

 

In October 1997, NMIRF repealed the Group Health Insurance Program provisions of the May 1997 regulations, but not part VII, regarding the life insurance program:

 

Article 1 - Introduction

These Rules and Regulations govern the Program and repeal Parts I, II, III, IV, V, VI, VIII and IX of the Rules and Regulations published in the Commonwealth Register, Volume 19, Number 2, on February 15, 1997, and adopted by the Notice and Certification of Adoption appearing in the Commonwealth Register, Volume 19, Number 5, on May 15, 1997.

 

19 Com. Reg. at 15576 (Aug. 15, 1997).

 

The 2002 Group Health Insurance Program (GHIP) Rules and Regulations, codified in NMIAC, title 110, subchapter 30.1, readopted and republished the October 1997 GHIP Regulations in their entirety, with extensive amendments.

 

The 2002 amendments changed article 1 so that it repealed part VII of the May 1997 amendments instead of part VIII:

 

Article 1 - Introduction

These Rules and Regulations govern the Program and repeal Parts I, II, III, IV, V, VI, VII and IX of the Rules and Regulations published in the Commonwealth Register, Volume 19, Number 2, on February 15, 1997, and adopted by the Notice and Certification of Adoption appearing in the Commonwealth Register, Volume 19, Number 5, on May 15, 1997.

 

24 Com. Reg. at 19369 (Oct. 30, 2002).

 

This change was probably an error. However, the error is significant, as it repeals the only regulations promulgated regarding the Group Life Insurance Program administered by NMIRF.

 

[Reserved for future Group Life Insurance Program Rules and Regulations.]


 

CHAPTER 110-40

MEMBER HOME LOAN PROGRAM REGULATIONS

 

 


Part 001          General Provisions

§ 110-40-001   Scope

§ 110-40-005   Authority

§ 110-40-010   Limitations

§ 110-40-015   Purpose

§ 110-40-020   Priority

§ 110-40-025   Funding Allocation

§ 110-40-030   Definitions

 

Part 100          Operation of the Program

§ 110-40-101   General Provisions

§ 110-40-105   Purpose of Loan

§ 110-40-110   Persons Eligible for Member Home Loans

 

Part 200          Qualifying Security

§ 110-40-201   Property Qualifying Under the Program; No Construction by Owner

§ 110-40-205   Co-ownership or Estate Ownership of Mortgaged Property

§ 110-40-210   Appraisals

§ 110-40-215   Surveys

§ 110-40-220   Criteria for Surveyors, Appraisers, and Contractors

 

Part 300          Credit and Payment Ability

§ 110-40-301   Creditworthiness

§ 110-40-305   Underwriting Guidelines; Monthly Mortgage Payment to Income Ratio

 

Part 400          Loan Amounts; Minimum and Maximum

§ 110-40-401   First Mortgage Loans on Fee Simple or Leasehold Interests; Insurance Required

§ 110-40-405   Leasehold Conversion Loans; Minimum and Maximum Loan Amounts

§ 110-40-410   Appraisals

§ 110-40-415   Second Mortgage Loans on Fee Simple or Leasehold Interests; Minimum and Maximum Loan Amounts; Insurance Required

 

Part 500          Term of Loans

§ 110-40-501   Repayment Period; Leasehold Loan Security Requirements

 

Part 600          Assignment and Transfer of Mortgaged Property

§ 110-40-601   Sale or Transfer of Mortgaged Property

§ 110-40-605   Consent by the Fund

 

Part 700          Assumption of Loan

§ 110-40-701   Assumption of Loan

 

Part 800          Certification of Borrower and Delivery of Loan

§ 110-40-801   Applicant’s Eligibility

§ 110-40-805   Delivery of Loan

§ 110-40-810   Pre-certification of Eligibility

§ 110-40-815   Disbursement of Loan Proceeds

 

Part 900          Security for Loans

§ 110-40-901   Title Insurance Required

§ 110-40-905   Amount of Coverage

§ 110-40-910   Other Insurance Coverage

§ 110-40-915   Collateral Required

§ 110-40-920   Construction Insurance or Performance Bond

 

Part 1000        Loan Charges and Fees

§ 110-40-1001             Interest Rate

§ 110-40-1005             Allowable Loan Charges; Prepayment Penalties

§ 110-40-1010             Servicing Agreements

 

Part 1100        Proof of Occupancy

§ 110-40-1101             Affidavit of Occupancy

 

Part 1200        Sanctions, Delinquent Loans, and Foreclosure

§ 110-40-1201             Sanctions

§ 110-40-1203             Delinquent Loans

§ 110-40-1205             Foreclosure and Post Foreclosure

 

Part 1300        Reconsideration of Loan Application

§ 110-40-1301             Request for Review

 

Part 1400        Miscellaneous Provisions

§ 110-40-1401             Headings

§ 110-40-1405             Severability

§ 110-40-1410             Effective Date


 

Chapter Authority: 1 CMC § 8315(g) (renumbered by PL 13-60 (effective Dec. 5, 2003)).

 

Chapter History: Amdts Adopted 31 Com. Reg. 29938 (Oct. 29, 2009); Amdts Proposed 31 Com. Reg. 29793 (Aug. 27, 2009); Amdts Adopted 19 Com. Reg. 15796 (Dec. 15, 1997); Amdts Proposed 19 Com. Reg. 15411 (July 15, 1997); Amdts Adopted 18 Com. Reg. 14303 (Aug. 15, 1996); Amdts Proposed 18 Com. Reg. 14152 (June 15, 1996); Amdts Adopted 18 Com. Reg. 14022 (Feb. 15, 1996); Amdts Proposed 17 Com. Reg. 13734 (Oct. 15, 1995); Amdts Adopted 17 Com. Reg. 13533 (June 15, 1995); Amdts Proposed 17 Com. Reg. 13269 (Apr. 15, 1995); Amdts Adopted 17 Com. Reg. 13288 (Apr. 15, 1995); Amdts Proposed 17 Com. Reg. 12949 (Feb. 15, 1995); Amdts Adopted 17 Com. Reg. 13283 (Apr. 15, 1995); Amdts Proposed 16 Com. Reg. 11882 (May 15, 1994); Amdts Proposed 16 Com. Reg. 11824 (Apr. 15, 1994); Amdts Adopted 16 Com. Reg. 12607 (Nov. 15, 1994); Amdts Proposed 16 Com. Reg. 12426 (Sept. 15, 1994); Amdts Adopted 15 Com. Reg. 11172 (Dec. 15, 1993); Amdts Proposed 15 Com. Reg. 10830 (Sept. 15, 1993); Amdts Adopted 15 Com. Reg. 10870 (Sept. 15, 1993); Amdts Proposed 15 Com. Reg. 10494 (Mar. 15, 1993); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Amdts Adopted 12 Com. Reg. 7387 (Sept. 15, 1990); Amdts Proposed 12 Com. Reg. 6831 (Mar. 15, 1990); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: PL 1-43 (effective Jan. 18, 1980), formerly codified at 1 CMC §§ 8301, et seq., originally created the Northern Mariana Islands Retirement Fund. PL 6-17 (effective May 7, 1989), the “Northern Mariana Islands Retirement Fund Act of 1988,” codified as amended at 1 CMC §§ 8301-8394, repealed and reenacted PL 1-43, as amended. See PL 6-17, ch. 1 § 8312; see also the commission comment to 1 CMC § 8301. PL 13-60 (effective Dec. 5, 2003), the “Retirement Integrity Assurance Act,” amended numerous provisions of the 1988 NMI Retirement Fund Act.

 

1 CMC § 8312 creates the Northern Mariana Islands Retirement Fund (NMIRF) as an autonomous agency and public corporation of the government of the Commonwealth of the Northern Mariana Islands. NMIRF, through a Board of Trustees, is empowered to establish, maintain and operate a retirement fund program for the public employees of the Commonwealth. 1 CMC § 8315(a). 1 CMC § 8315(g) (renumbered by PL 13-60) authorizes NMIRF to adopt rules and regulations as necessary for the exercise of the funds powers, performance of its duties and administration of its operations.

 

Part 001 -       General Provisions

 

§ 110-40-001   Scope

 

The regulations in this chapter shall govern the administration of the Member Home Loan Program as established and adopted herein by the Board of Trustees of the NMI Retirement Fund.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The 1991 amendments readopted and republished the Member Home Loan Program Regulations in their entirety. The Commission, therefore, cites the 1991 amendments in the history sections throughout this chapter.

 

§ 110-40-005   Authority

 

Under and by virtue of the authority provided under 1 CMC § 8315(f) and the Administrative Procedure Act, 1 CMC §§ 9101, et seq., the Board of Trustees hereby promulgates the regulations in this chapter, as amended.

 

Modified, 1 CMC § 3806(d), (g).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The Commission changed “Procedures” to “Procedure” to correct a manifest error.

 

PL 13-60 (effective Dec. 5, 2003) renumbered former 1 CMC § 8315(f) as 1 CMC § 8315(g).

 

§ 110-40-010   Limitations

 

The regulations in this chapter shall be limited by and interpreted consistent with the NMI Retirement Fund Act of 1988, as amended.

 

Modified, 1 CMC § 3806(d), (g).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The Commission deleted the word “and” before “the NMI Retirement Fund Act” to correct a manifest error.

 

§ 110-40-015   Purpose

 

The purpose of the Member Home Loan Program is to facilitate investment of the assets and funds of the NMI Retirement Fund in a well-secured, prudent, and historically sound investment instrument, and at the same time assist eligible members of the fund by making available certain sums of money for loans to construct, purchase or improve a principal home or residence, or to purchase a leasehold upon which an existing home is situated, or to refinance certain mortgage loans as approved by the Board of Trustees.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

§ 110-40-020   Priority

 

Member home loans shall be provided in the following order of priority:

 

(a)        Acquisition or construction of a principal home for first time homeowners;

 

(b)        Acquisition of a principal home for previous homeowners and home improvement loans;

 

(c)        Refinancing of current loans for acquiring an existing principal home, whether or not the borrower is a first time homeowner.

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The 1991 amendments amended subsection (a).

 

§ 110-40-025   Funding Allocation

 

The Board may set aside up to 40% of the fund’s assets at cost for the Member Home Loan Program. Of the amount set aside by the Board for the Member Home Loan Program, at least fifty percent shall be reserved for loans under § 110-40-020(a). The Board of Trustees may reallocate any of the reserved amounts herein described from time to time as it deems appropriate. (Source: 1 CMC § 8351(b)).

 

Modified, 1 CMC § 3806(c), (e), (f).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

§ 110-40-030   Definitions

 

As used in the regulations in this chapter:

 

(a)        “Administrator” means the Administrator of the NMI Retirement Fund.

 

(b)        “Active member” means a member who is currently included within the membership of the fund. It does not include a member who ceases to be an employee, notwithstanding the member’s establishment of vested benefit status. (Source: 1 CMC § 8314(k).)

 

(c)        “Applicant” means any eligible member signing the note or mortgage, or both, and occupying the subject property, including any guarantor, endorser, or co-signer that occupies the property.

 

(d)       “Appraised value” means the value assigned to or placed upon a property and improvements thereon, offered as collateral when securing or obtaining a loan under the regulations in this chapter. The appraised value includes the value of the improved property plus the loan amount, or unimproved property plus the loan amount, approved under the regulations in this chapter.

 

(e)        “Board” or “Board of Trustees” means the Board of Trustees of the Northern Mariana Islands Retirement Fund as defined in 1 CMC § 8314(f).

 

(f)        “Borrower” means the person who signs the note evidencing the loan and the mortgage securing it.

 

(g)        “Buyer” includes a lessee who purchases a principal home on a leasehold land where the lease has more than 30 years remaining.

 

(h)        “Eligible member” means a person who meets the eligibility requirements as described in § 110-40-110 of the regulations in this chapter.

 

(i)         “Guarantor, endorsers, or co-signers” means the persons signing the note or mortgage, or both, but who may or may not be occupying the subject property.

 

(j)         “Home improvement” means a major physical addition made to a principal home situated on improved real property, upon which completion, will substantially add to the life and value of the property. For purposes of the member home loan program, home improvement only includes the renovation of the principal home, in whole or in part, the addition of a bedroom, bathroom, a kitchen, a living room, a change from tin roofing to concrete roofing, or any combination thereof.

 

(k)        “Improved real property” means real property upon which are situated or shall be constructed permanent buildings suitable for residence, industry, or commerce. (Source: 1 CMC § 8354(a)(4).)

 

(l)         “Leasehold conversion loan” means a loan obtained for the purpose of and used solely for the borrower’s purchase of the fee simple interest where the borrower’s principal home is situated on leasehold land, whether or not the borrower has an existing first leasehold mortgage loan. (Source: 1 CMC § 8354(a)(6).)

 

(m)       “Lender” or “participating lender” means a financial institution or an agency of the government which may by law make loans secured by first or second mortgages on real estate and which participates in the Member Home Loan Program under an agreement with the NMI Retirement Fund. Lender or participating lender includes the NMI Retirement Fund, if the fund establishes a branch within its organization.

 

(n)        “Loan” or “member home loan” means a loan made under the Member Home Loan Program administered and funded by the NMI Retirement Fund.

 

(o)        “Member” means any person who is included within the membership of the fund at any time and includes an active member or a retiree. (Source: 1 CMC 8314(k).)

 

(p)        “Mortgage” includes a deed of trust for security. (Source: 1 CMC § 8354(a)(4).)

 

(q)        “NMIRF” or “fund” means the Northern Mariana Islands Retirement Fund.

 

(r)        “Unimproved real property” means real property upon which no structures or permanent buildings are situated; or upon which temporary structures or buildings are situated but are not suitable for residence, industry or commerce.

 

(s)        “Program” means the Member Home Loan Program administered by the NMI Retirement Fund.

 

(t)        “Retiree” means an active member who has retired and becomes a beneficiary of the NMI Retirement Fund, but does not include recipients of any of the survivor’s benefits paid by the fund.

 

Modified, 1 CMC § 3806(c), (d), (f).

 

History: Amdts Adopted 15 Com. Reg. 11172 (Dec. 15, 1993); Amdts Proposed 15 Com. Reg. 10830 (Sept. 15, 1993); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Amdts Adopted 12 Com. Reg. 7387 (Sept. 15, 1990); Amdts Proposed 12 Com. Reg. 6831 (Mar. 15, 1990); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The Commission inserted a comma after the word “industry” in subsection (k) pursuant to 1 CMC § 3806(g).

 

The 1990 amendments amended former subsections (h), (j), (k) and (p). The 1991 amendments added new subsections (d) and (r), deleted former subsection (p), moved former subsection (s) to subsection (g) and re-designated the remaining subsections. The 1993 amendments repealed and readopted subsection (j).

 

Part 100 -       Operation of the Program

 

§ 110-40-101   General Provisions

 

The following generally describes the operation of the program as it is administered by the NMIRF.

 

(a)        Periodically, the Board of Trustees may allocate, as part of its overall investment plan, a portion of its assets available for investment in the Member Home Loan Program. The allocation shall be made subject to the limitations of the Retirement Fund Act, as amended, and in such amounts as the Board deems prudent, subject to an aggregate limitation of 40 percent of the fund’s assets at cost. Funds so allocated may be further allocated among the participating lenders.

 

(b)        Members of the fund desiring a member home loan shall file an application at a participating lender for such a loan.

 

(c)        Financial institutions or agencies desiring to participate as lenders in the fund’s Member Home Loan Program shall file an application with the fund, and upon approval and certification as a participant, such institution or agency shall execute a servicing agreement with the fund and thereafter become a “participating lender.”

 

(d)       The participating lender shall:

(1)        Apply to the fund for certification of the applicant’s eligibility for a loan;

(2)        Ensure the purpose for which the loan is sought is an eligible purpose as described* § 110-40-105 of this chapter.

(3)        Determine the applicant’s creditworthiness;

(4)        Make the loan in its own name as lender;

(5)        Provide the interim or construction financing, if necessary;

(6)        Forward the note, mortgage and the documentation to the fund for its approval of the permanent financing.

 

(e)        If the loan and the mortgage securing the loan comply with the regulations, the participating lender shall endorse the note and assign the mortgage and note to the fund which shall purchase the same from the participating lender without recourse.

 

(f)        The fund may, in its discretion, service the loan or forward it to a participating lender having a loan servicing agreement with the fund.

 

* So in original.

 

Modified, 1 CMC § 3806(c), (d), (f), (g).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Amdts Adopted 12 Com. Reg. 7387 (Sept. 15, 1990); Amdts Proposed 12 Com. Reg. 6831 (Mar. 15, 1990); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The 1990 amendments amended subsection (e). The 1991 amendments amended the opening paragraph.

 

In the opening paragraph, the Commission inserted the final period. In subsection (a), the Commission deleted a comma after “overall investment” and inserted a comma after “plan” to correct a manifest error.

 

§ 110-40-105   Purpose of Loan

 

There shall be no outright cash disbursement or cash take out to the applicant or borrower under the Member Home Loan Program. Member home loans shall be made for the following purposes only, all of which shall be verified before and during the term of the loan:

 

(a)        The construction, purchase, or home improvement of a principal home situated on improved real property;

 

(b)        The refinancing or conversion of a construction, home purchase or improvement loan to a permanent member home loan for a principal home situated on improved real property;

 

(c)        The purchase or refinancing of the purchase of the fee simple interest in a principal home situated on improved real property that is a qualified leasehold land;

 

(d)       The refinancing of an existing member home loan if the purpose is to additionally finance a proposed or prospective home improvement amounting to at least $5,000;

 

(e)        The refinancing of an existing second mortgage loan not made under the Member Home Loan Program and convert it to a first mortgage member home loan, if the second mortgage loan was made for the purpose of:

(1)        Making the down payment for the subject property upon which is situated a principal home;

(2)        Purchasing leasehold property in fee simple; or

(3)        Making home improvements;

(4)        Constructing a new principal home.

 

(f)        To purchase a note, debt, or other obligation secured by mortgages or insured by the Federal Home Administration (FHA). (Source: 1 CMC § 8354(a)(2).)

 

(g)        To purchase a note, debt, or other obligations for the repayment of home loans under the Servicemen’s Readjustment Act of 1944 or under title II of the National Housing Act. (Source: 1 CMC § 8354(a)(3).)

 

(h)        The refinancing of an existing mortgage loan not made under the Member Home Loan Program and convert it to a second mortgage member home loan if the original mortgage was taken out for the purpose of:

(1)        Making home improvements; or

(2)        Acquisition or construction of a new principal home.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 16 Com. Reg. 12607 (Nov. 15, 1994); Amdts Proposed 16 Com. Reg. 12426 (Sept. 15, 1994); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The Commission inserted a comma after the word “purchase” in subsection (a) pursuant to 1 CMC § 3806(g). The 1991 amendments added new subsection (e)(4) and amended subsection (a). The 1994 amendments added new subsection (h).

 

§ 110-40-110   Persons Eligible for Member Home Loans

 

To be eligible for a member home loan, the applicant shall be a retiree or an active member of the fund, with at least thirty-six continuous months of contributing membership in the fund immediately before certification by the fund that the applicant is eligible for the loan, provided that:

 

(a)        An active member holding a permanent position classified under the Civil Service System shall have had at least thirty-six continuous months of contributing membership immediately before certification; and shall have at least 18 continuous immediate months of actual work in the member’s position;

 

(b)        An active member holding a position not classified by the Civil Service System, or a position requiring the advice and consent of the Legislature, or an elective position, shall have had at least fifteen years of total service and have been a contributing member of the fund for at least five years on the date of certification of eligibility; and shall have at least 18 continuous immediate months of actual work in the member’s position;

 

(c)        An active member on leave without pay or an active member whose appointment or employment is for a fixed date or limited term, or otherwise temporary in nature, shall not be eligible; provided that a member on authorized educational or child care leave where contributions are made for the member shall be excepted from this subsection;

 

(d)       A member who has an outstanding member home loan shall not be eligible;

 

(e)        A vested member who leaves government employment and leaves his/her contribution in the fund, will be eligible to apply for a member home loan following six months after his/her return to government service; members who withdrew their contributions to the fund must have thirty-six months of continuous contributing membership service immediately prior to certification;

 

(f)        A member who has an outstanding member home loan shall not be eligible to obtain a loan for another person.

 

Modified, 1 CMC § 3806(d), (e), (f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15796 (Dec. 15, 1997); Amdts Proposed 19 Com. Reg. 15411 (July 15, 1997); Amdts Adopted 15 Com. Reg. 10870 (Sept. 15, 1993); Amdts Proposed 15 Com. Reg. 10494 (Mar. 15, 1993); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Amdts Adopted 12 Com. Reg. 7387 (Sept. 15, 1990); Amdts Proposed 12 Com. Reg. 6831 (Mar. 15, 1990); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The 1990 amendments amended subsections (a), (b) and (c). The 1993 amendments added a new subsection (e) and re-designated subsection (f). The 1997 amendments amended subsections (d) and (f).

 

In subsection (f), the Commission changed the final semi-colon to a period.

 

The 1997 amendments deleted former § 4.4, entitled “Eligibility for Another Loan; Limitations.” See 13 Com. Reg. 8235 (Oct. 15, 1991); 13 Com. Reg. 7671 (Apr. 15, 1991); 12 Com. Reg. 7387 (Sept. 15, 1990); 12 Com. Reg. 6831 (Mar. 15, 1990); 11 Com. Reg. 6244 (June 15, 1989); 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Part 200 -       Qualifying Security

 

§ 110-40-201   Property Qualifying Under the Program; No Construction by Owner

 

(a)(1)   To qualify under the Member Home Loan Program, the property securing the loan shall be “improved real property” located in the Commonwealth of the Northern Mariana Islands. The member shall own or propose to own the property in fee simple or possess it under a lease agreement acceptable to the Board. This includes homestead property, as such property is defined by the Marianas Public Land Corporation (MPLC), to which the applicant has been duly granted a permit to occupy, provided that a memorandum of understanding has been properly executed between the fund and the MPLC, which permits the borrower to mortgage the homestead property, and grants the fund quiet title to the property in the event of the borrower’s default and foreclosure of an approved loan. The property to be acquired, refinanced, or constructed may include:

(i)         A one to four-family home, dwelling unit or structure which may be attached or detached;

(ii)        A one-family dwelling unit in a planned development; or

(iii)       A one-family dwelling unit in a condominium project or townhouse.

(2)        The member shall occupy or agree to continuously occupy the dwelling unit as the member’s principal home during the term of the loan. Any appraisal of the property shall include the value of all improvements, but the value of the dwelling unit or units not occupied by the member shall be deducted in computing the loan-to-value ratio.

 

(b)        Unless the Board finds a compelling justification otherwise on a case by case review, the fund shall not purchase or approve a loan secured by property which is not served by any utilities, lacks or has difficult access to or from a public road, or does not conform to all applicable zoning and land use restrictions or building code regulations, is located on a substandard lot, is a lodging unit, or has any other unusual characteristic that the fund determines to adversely affect its value. The participating lender may request the fund’s prior written approval as to whether a specific property qualifies for purchase by the fund before issuing a loan commitment to the applicant. The Board may establish a minimum lot size. Notwithstanding any provision of the regulations in this chapter to the contrary, construction loans for residential homestead properties lacking access to Commonwealth utilities may be extended, provided that the borrower(s) provide their own power generator and a permanent water catchment and storage system acceptable to the fund. This requirement shall be included as part of the loan agreement.

 

(c)        The fund shall not purchase any member home loan made for the construction of or home improvements to a principal dwelling, unless the construction was done or improvements were made by:

(1)        A duly licensed contractor from a pre-qualified list maintained by the Board; and

(2)        The construction or improvements are in accord with such building and zoning code regulations as the CNMI legislature, or in the absence thereof, the Board, may from time to time adopt.

 

(d)       An interim or construction financing loan shall not be made if the fund determines that the owner or an affiliated business is the contractor.

 

(e)        The fund can make an interim or construction financing loan where a family member is the contractor, provided that prior to loan approval and in addition to other requirements provided in the regulations in this chapter, the following applies:

(1)        The borrower must submit:

(i)         At least three quotations from three different MHLP approved contractors;

(ii)        Certified or stamped plans and specifications of the proposed construction; and

(iii)       A contractor’s cost breakdown for each quotation.

(2)        The fund, in its discretion, may request a review of the documents by the Department of Public Works or an independent architectural or engineering firm for compliance and reasonableness of cost estimates claimed.

(3)        The performance bond and builder’s risk required under § 110-40-920 of this chapter must be recorded at the CNMI Recorder’s Office and include a provision that in the event the contractor defaults on the contract and the borrower (owner) neglects or refuses to enforce the terms of the bond, the fund is authorized to act on behalf of the owner and to enforce the bond.

(4)        Receipts showing actual expenditures must accompany all payment requests.

(5)        A full one year’s builder’s warranty be provided to the fund, with a clause stipulating that if the borrower refuses to enforce the provisions stated therein, the fund shall have the right, in its sole discretion, to enforce any provision, without the borrower’s (owner’s) consent.

 

Modified, 1 CMC § 3806(c), (d), (e), (f).

 

History: Amdts Adopted 18 Com. Reg. 14303 (Aug. 15, 1996); Amdts Proposed 18 Com. Reg. 14152 (June 15, 1996); Amdts Adopted 16 Com. Reg. 12607 (Nov. 15, 1994); Amdts Proposed 16 Com. Reg. 12426 (Sept. 15, 1994); Amdts Adopted 15 Com. Reg. 10870 (Sept. 15, 1993); Amdts Proposed 15 Com. Reg. 10494 (Mar. 15, 1993); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Amdts Adopted 12 Com. Reg. 7387 (Sept. 15, 1990); Amdts Proposed 12 Com. Reg. 6831 (Mar. 15, 1990); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The original paragraphs of subsection (a) were not designated. The Commission designated subsections (a)(1) and (a)(2).

 

The 1990 amendments amended subsection (b). The 1991 amendments amended subsections (a)(1) and (d). The 1993 amendments added new subsection (e) and amended subsection (d). The 1994 amendments amended subsection (b). The 1996 amendments amended subsection (b).

 

§ 110-40-205   Co-ownership or Estate Ownership of Mortgaged Property

 

The member or the member and the member’s spouse, if married, shall have at least a fifty percent interest in the mortgaged property. If the member is not the sole owner of the mortgaged property, all persons whose signatures are required to create a valid first mortgage lien upon the mortgaged property shall sign the mortgage. If the property is owned, in whole or in part, by a decedent, the estate of the decedent shall first be subject to a probate action and a final probate decree.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

§ 110-40-210   Appraisals

 

Any appraisal required under the regulations in this chapter is subject to review by, and the approval of, the fund. The fund may require that an appraisal be obtained from an approved list of appraisers maintained by the fund. Such a list may include the appraisers approved for listing by FHA. All appraisers must meet the applicable requirements set forth in § 110-40-220 of this chapter.

 

Modified, 1 CMC § 3806(c), (d), (f).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Amdts Adopted 12 Com. Reg. 7387 (Sept. 15, 1990); Amdts Proposed 12 Com. Reg. 6831 (Mar. 15, 1990); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

§ 110-40-215   Surveys

 

The fund, in its discretion, may require a survey of the property upon which a principal home will be constructed, purchased or improved, if the last survey was performed more than two years prior to the date of application for a member home loan. This survey must determine the exact location, size and shape of such property. Monument markers shall be visibly placed on each corner of the boundaries surrounding the property being surveyed. The survey work must be done by a surveyor who meets the criteria established in § 110-40-220 of this part. The borrower is wholly responsible for the cost of the survey.

 

Modified, 1 CMC § 3806(c), (f).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991).

 

§ 110-40-220   Criteria for Surveyors, Appraisers and Contractors

 

In order to develop a qualified list of surveyors, appraisers, and contractors, the Board of Trustees may solicit a statement of interest from the general public, and shall require these individuals or firms to:

 

(a)        Be duly licensed to do business in the Commonwealth;

 

(b)        Have been in business for the last 3 years immediately prior to being selected for a project under a member home loan or have at least three years of experience as an appraiser or surveyor; except that for contractors whose principal place of business is on the island of Rota or Tinian, such contractors must have been in business for at least 1 year immediately prior to being selected for a project under this chapter.

 

(c)        In the case of contractors, have constructed a minimum of 10 residential construction projects, one of which was worth at least $25,000; the Board of Trustees may waive this requirement for good cause or as it deems appropriate under the circumstances.

 

(d)       Be able to provide a list of projects completed and a short client list;

 

(e)        Be insured against legal liability, and;

 

(f)        All contractors must secure a performance bond as required under part 900, § 110-10-920 of this chapter.

 

(g)        Whenever required by Commonwealth law, or by the CNMI Board of Professional Licensing, any surveyor or appraiser who performs services under this chapter must be certified and licensed as required by such law, or by the CNMI Board of Professional Licensing.

 

Modified, 1 CMC § 3806(c), (d), (e), (f).

 

History: Amdts Adopted 18 Com. Reg. 14022 (Feb. 15, 1996); Amdts Proposed 17 Com. Reg. 13734 (Oct. 15, 1995); Amdts Adopted 17 Com. Reg. 13283 (Apr. 15, 1995); Amdts Proposed 16 Com. Reg. 11882 (May 15, 1994); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991).

 

Commission Comment: The Commission inserted a comma after the word “appraisers” in the section title and the opening paragraph pursuant to 1 CMC § 3806(g). The 1995 amendments amended subsection (b). The 1996 amendments amended subsection (c).

 

Part 300 -       Credit and Payment Ability

 

§ 110-40-301   Creditworthiness

 

The lender shall be responsible for determining the creditworthiness of each applicant who applies to it for a member home loan. In making that determination the lender shall take into consideration:

 

(a)        The applicant’s monthly debt payment to income ratio;

 

(b)        The applicant’s credit reputation; and

 

(c)        Any other factor considered by a prudent lender.

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

§ 110-40-305   Underwriting Guidelines; Monthly Mortgage Payment to Income Ratio

 

As a general rule:

 

(a)        The lender shall require that the applicant’s monthly mortgage payment does not exceed thirty percent of the applicant’s stable monthly income less any monthly debt payments.

 

(b)        As used in this section, the term “monthly mortgage payments” shall include, as applicable, the first mortgage payment, mortgage or life insurance payments, hazard and flood insurance payments, lease rent, property taxes, and monthly dues for common element/property charges and maintenance, but excluding dwelling unit utility charges for condominiums and property with similar dues and charges.

 

(c)        As used in this section, the term “monthly debt payment” shall include all monthly payments on installment debts having a remaining term of one year or more. Secondary financing for the subject property, mortgage loan payment for other properties, alimony, child support, and separate maintenance payments shall be considered installment debts, unless the obligations terminate within one year.

 

(d)       As used in this section, the term “stable monthly income” is the applicant’s gross monthly income from the applicant’s primary employment base earnings plus recognizable secondary income averaged for the past 12 months. Secondary income of the applicant, such as rental income, overtime or part time employment may be included in stable monthly income only if those items of secondary income are substantiated by written evidence of the applicant’s previous year’s earnings and that the continuation thereof is probable. Interest and dividends may be considered if substantiated by written evidence and averaged for the past two years. Rental income for the subject property may be considered if substantiated by written evidence.

 

(e)        If the applicant chooses to disclose income from alimony, child support, or maintenance payments, the lender may consider these payments as income to the extent that they are likely to be consistently made. Factors which the lender may consider in making that determination include, but shall not be limited to:

(1)        Whether the payments are received pursuant to written agreement or court decree;

(2)        The length of time the payments have been received;

(3)        The regularity of payments;

(4)        The availability of procedures to compel payment;

(5)        Whether full or partial payments have been made;

(6)        The age of any child; and

(7)        The creditworthiness of the payer, including the credit history of the payer where available to the lender under the Fair Credit Reporting Act (15 USC §§ 1681-1681(t)) or other applicable laws. The lender shall submit to the fund evidence to support its determination.

 

(f)        Factors such as expected pay increases under mandatory contract terms, education, training, technical skills, occupation, potential or expected pay increases, past employment history, and future employment expectations may be taken into account on a case-by-case basis in determining stable monthly income.

 

(g)        Income necessary to qualify the borrower from sources not substantiated in the credit report shall be verified in writing from a reliable source.

 

(h)        When the borrower is self-employed, the minimum acceptable documentation to verify income shall be the:

(1)        Profit and loss statements for the prior two years, which should include the last statement covering the year before the applicant’s date of application; or

(2)        Tax returns for the previous two years.

 

(i)         If the member is applying for a leasehold conversion loan, the monthly mortgage payment shall not exceed thirty percent of the applicant’s stable monthly income less any monthly debt payment including any other mortgage payment for the subject property.

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15796 (Dec. 15, 1997); Amdts Proposed 19 Com. Reg. 15411 (July 15, 1997); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Amdts Adopted 12 Com. Reg. 7387 (Sept. 15, 1990); Amdts Proposed 12 Com. Reg. 6831 (Mar. 15, 1990); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The 1990 amendments amended subsection (i). The 1997 amendments deleted former subsections (i), (j) and (k). The Commission re-designated former subsection (l) as subsection (i).

 

In subsection (a), the Commission inserted the word “a” before “case-by-case” to correct a manifest error.

 

Part 400 -       Loan Amounts; Minimum and Maximum

 

§ 110-40-401   First Mortgage Loans on Fee Simple or Leasehold Interests; Insurance Required

 

(a)(1)   No member home loan secured by a first mortgage on unencumbered improved real estate owned in fee simple shall exceed:

(i)         $150,000; and

(ii)        Seventy-five percent of the lesser of the purchase price or the appraised value of the real estate and improvements mortgaged to secure it. (Source: 1 CMC § 8354(a).)

(2)        The Board may by future regulation make such exceptions to the above as are authorized by 1 CMC § 8354(a)(4).

 

(b)        No member home loan secured by a first mortgage on a leasehold interest in improved real property shall exceed

(1)        $150,000 and

(2)        Seventy-five percent of the lesser of the purchase price or the appraised value of the leasehold interest and improvements. (Source: 1 CMC § 8354(a)(4).)

 

(c)        The “value” in a loan-to-value ratio shall in no event exceed the lesser of:

(1)        $150,000,

(2)        The purchase price; or

(3)        The appraised value of the property to be mortgaged.

 

(d)       All loans shall be further secured by an insurance or guarantee against default or loss under a mortgage insurance policy issued by a casualty insurance company. If no mortgage insurance is available, the applicant shall purchase a life insurance policy naming the fund as the primary beneficiary to the extent of the borrower’s current balance remaining unpaid. The mortgage insurance or life insurance, as the case may be, shall be obtained from an insurer licensed to do business in the Commonwealth of the Northern Mariana Islands and shall insure or guarantee against the borrower’s default or loss sufficient, in case of death of the borrower, to cover the fund’s exposure to the lesser of the purchase price or appraised value of the mortgaged property. Mortgage or life insurance coverage shall remain in force until the principal amount of the loan is reduced to ten percent of the current appraised value of the mortgaged property, at which time the coverage shall be subject to cancellation solely at the Board’s option. The borrower shall pay for the premiums for the insurance. A copy of any insurance policy required under this section shall be submitted to the fund after approval of the loan and prior to the release of loan proceeds. (Source: 1 CMC § 8354(a)(4), (5).)

 

(e)        No member home loan secured by a first mortgage shall be made in an amount exceeding $150,000 or less than $15,000.

 

(f)        There shall be a minimum cash equity of three percent of the purchase price of a principal home.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 17 Com. Reg. 13283 (Apr. 15, 1995); Amdts Proposed 16 Com. Reg. 11882 (May 15, 1994); Amdts Proposed 16 Com. Reg. 11824 (Apr. 15, 1994); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The original paragraphs of subsection (a) were not designated. The Commission designated subsections (a)(1) and (a)(2).

 

The 1995 amendments amended subsections (a)(1)(i), (b)(1), (c)(1) and (e).

 

§ 110-40-405   Leasehold Conversion Loans; Minimum and Maximum Loan Amounts

 

(a)        No leasehold conversion loan shall be made which, when combined with the outstanding balance of a first leasehold home loan, exceeds $150,000, or when the combined balances of any first leasehold mortgage loan and the amount of the leasehold conversion loan exceeds seventy-five percent of the appraised value of the real estate mortgaged to secure it.

 

(b)        No leasehold conversion loan shall be made in an amount less than $15,000.

 

(c)        The collateral for a leasehold conversion loan shall be a first mortgage on the fee simple interest and a first or second mortgage on the leasehold interest on the improved real estate. A leasehold conversion loan is a loan obtained for the purpose of and used solely for the borrower’s purchase of the fee simple interest in the improved real estate. If the leasehold conversion loan is secured by a second leasehold mortgage on improved real estate, then the fund shall first determine that the first leasehold mortgage does not contain any provisions which might jeopardize the security position of the fund or the borrower’s ability to repay the two mortgage loans. (Source: 1 CMC § 8354(a)(6).)

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 17 Com. Reg. 13283 (Apr. 15, 1995); Amdts Proposed 16 Com. Reg. 11882 (May 15, 1994); Amdts Proposed 16 Com. Reg. 11824 (Apr. 15, 1994); Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The 1995 amendments amended subsections (a) and (b).

 

In subsection (c), the Commission changed “determined” to “determine” and “contained” to “contain” to correct manifest errors.

 

§ 110-40-410   Appraisals

 

Any appraisal required under the regulations in this chapter is subject to the requirements of § 110-40-210.

 

Modified, 1 CMC § 3806(c), (d).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

§ 110-40-415   Second Mortgage Loans on Fee Simple or Leasehold Interests; Minimum and Maximum Loan Amounts; Insurance Required

 

(a)        No member home loan secured by a second mortgage on encumbered improved real estate owned in fee simple or under an acceptable leasehold shall exceed:

(1)        $150,000; and

(2)        Seventy-five percent of the difference between the appraised value of the real estate and improvements mortgaged to secure it and the original loan amount of the first mortgage.

 

(b)        No member home loan secured by a second mortgage on encumbered improved real estate owned in fee simple or under an acceptable leasehold shall be made in an amount less than $15,000.

 

(c)        No member home loan secured by a second mortgage on encumbered improved real estate owned in fee simple or under an acceptable leasehold shall be given unless:

(1)        The borrower obtains the first lienholder’s written consent; and

(2)        The fund determines that the first mortgage does not contain any provisions which might jeopardize the security position of the fund; and

(3)        The fund has made a determination of the borrower’s ability to repay the two mortgage loans using the same underwriting criteria as those used for first mortgages, except for the LTVR which utilizes the more stringent requirement set forth in subsection (a)(2).

 

(d)       As a condition of the loan, the borrower of a second mortgage member home loan shall execute an assignment of all rental income due to the borrower, if any, to the fund in the event of default.

 

(e)        In the case of second mortgages, the borrower is prohibited from securing additional financing from other lending institutions and using the same real estate mortgaged to the fund, without first obtaining the prior written consent of the fund. Prior to any consent by the fund, the fund shall first determine that the subsequent mortgage does not contain any provisions which might jeopardize the security position of the fund or the borrower’s ability to repay the three mortgage loans.

 

(f)        All loans shall be further secured by an insurance or guarantee against default or loss under a mortgage insurance policy and property insurance policy issued by a casualty insurance company. Such policies are subject to the requirements under § 110-40-401(d) of this chapter for mortgage or life insurance coverage and under § 110-40-910 of this chapter for property insurance coverage.

 

Modified, 1 CMC § 3806(c), (d), (e), (f).

 

History: Amdts Adopted 16 Com. Reg. 12607 (Nov. 15, 1994); Amdts Proposed 16 Com. Reg. 12426 (Sept. 15, 1994).

 

Part 500 -       Term of Loans

 

§ 110-40-501   Repayment Period; Leasehold Loan Security Requirements

 

(a)        The term of any member home loan shall not exceed thirty years or any lesser period the Board may in its sole discretion determine to be appropriate upon consideration of the character and economic life of the property securing the loan. There shall be no minimum repayment period requirement.

 

(b)        If the loan is secured by a first mortgage on leasehold property, the fixed rental term of the lease, prepaid or otherwise, shall extend at least two years beyond the stated maturity date of the note, mortgage or other obligation it secures. (Source: 1 CMC § 8354(a)(5)(i).)

 

(c)        The term of any leasehold conversion loan shall not exceed twenty years.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Amdts Adopted 12 Com. Reg. 7387 (Sept. 15, 1990); Amdts Proposed 12 Com. Reg. 6831 (Mar. 15, 1990); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: The 1990 amendments amended subsections (b) and (c).

 

Part 600 -       Assignment and Transfer of Mortgaged Property

 

§ 110-40-601   Sale or Transfer of Mortgaged Property

 

(a)        Every mortgage shall contain a due-on-sale clause giving the fund the right to require the borrower to make immediate payment in full of the entire indebtedness secured by the mortgage if the borrower sells, transfers, leases, subleases, or assigns all or part of the interest in real property securing a member home loan, including any equitable or beneficial interest, without first obtaining the fund’s prior written consent.

 

(b)        The due-on-sale clause shall be fully effective as to any sale, lease transfer or assignment of interest in the mortgaged trust property by any trustee, or the sale, lease, transfer or assignment of the borrower’s equitable or beneficial interest in the property, without the prior written consent of the fund.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Certified 14 Com. Reg. 8653 (Jan. 15, 1992); Amdts Adopted 13 Com. Reg. 8235 (Oct. 15, 1991); Amdts Proposed 13 Com. Reg. 7671 (Apr. 15, 1991); Adopted 11 Com. Reg. 6244 (June 15, 1989); Proposed 11 Com. Reg. 5803 (Jan. 15, 1989).

 

Commission Comment: In subsection (a), the Commission inserted a comma after “transfers” to correct a manifest error.

 

§ 110-40-605   Consent by the Fund

 

(a)        The fund’s consent shall be subject to the Member Home Loan Program policy in effect on the date a request for consent is received by the fund.

 

(b)        The fund’s right to require the borrower or the trustee to make payment in full with respect to the sale, lease, transfer or assignment shall be subject to any applicable laws which restrict or prohibit the fund from its exercise of this right.