The Puerto Rican government recently enacted Act 92, which establishes a debt payment incentive plan (the "Plan") for employers in Puerto Rico that have outstanding debts with the Puerto Rico State Insurance Fund Corporation ("SIFC"). Under Puerto Rican law, workers' compensation can only be obtained through the SIFC, a government-owned corporation.1 In the event of a work-related accident at an uninsured employer, the SIFC nevertheless covers that accident and seeks reimbursement from the uninsured employer for any compensation plus medical expenses the SIFC incurred. The SIFC collects such amounts and deposits them into the Uninsured-Employer Cases Fund.
According to the Plan, employers now may pay a 50% discounted rate for outstanding debt owed to the SIFC related to: (i) payments of workers' compensation policy premiums; (ii) amounts owed as a result of employers declared uninsured; (iii) employer responsibility or any other responsibility related to workers' compensation; or (iv) any miscellaneous debt imposed by the SIFC related to workers' compensation, provided certain requirements are met.
The 50% discount rate under the Plan will apply for outstanding workers' compensation-related debts incurred no more than 15 years ago (i.e., back to fiscal year 2001-2002), except for debts incurred during fiscal year 2016-2017. Debts older than 15 years will be forgiven, provided the employer satisfies the more recent debt obligations through the Plan.
To qualify for the 50% percent discount under the Plan, employers should have already filed the Payroll Statement corresponding to fiscal year 2016-2017 within the time prescribed by law and paid the corresponding premium and any other debt with the SIFC corresponding to fiscal year 2016-2017.
Because the 50% discount under the Plan will only be available for covered items if all other debt is paid in its entirety, no installments payment...