2023 Laws of Puerto Rico › TITLE ELEVEN - Workmen’s Compensation (§§ 1 — 268) › Chapter 9 - Temporary Disability Benefits (§§ 201 — 212) › § 210 - Disability Benefit Fund

(a) Establishment and control.— There is hereby established a special fund which shall constitute a Disability Fund and shall be administered by the Secretary exclusively for the purposes of this chapter. This Fund shall consist of:
(1) All contributions, interest and penalties collected under the provisions of this chapter;
(2) all interest earned upon investments of the Fund;
(3) all property or securities credited in lieu of contributions or other liabilities to the Fund;
(4) all security upon said property or securities;
(5) all money recovered on losses sustained by the Fund, and
(6) all money received for the Fund from any other source.
The Secretary of the Treasury may, for purposes of administrating this chapter, establish in the Fund all such accounts he may deem convenient.
(b) Deposits.— The Secretary of the Treasury shall be treasurer and ex officio custodian of the Disability Benefit Fund.
The benefits provided by this chapter, any refund payable under §§ 203(i)(2)(A) and 209(d) of this title and the administrative expenses used for the efficient administration of the disability benefits program established herein shall be payable out of the Fund. The Secretary shall, from time to time, requisition from the Fund such amounts not exceeding the available balance therein as he may consider necessary for the payment of said benefits, refunds and administrative expenses.
(c) Disbursements from the Fund.— Disbursements from the Fund shall be made through the Secretary of the Treasury or through special disbursement officers to be appointed by the Secretary of the Treasury upon request of the Secretary of Labor and Human Resources. The amount of any check issued for the payment of benefits or for the refunding of contributions which has not been paid within the period of one year subsequent to the date of issuance, shall be covered into the Fund, notwithstanding any other provision of law to the contrary.
(d) Investments from the Fund.— The Secretary of the Treasury may, in consultation with the Secretary, invest the reserves belonging to the Fund in the following kind of securities:
(1) In the same kind of securities that the Secretary of the Treasury is authorized to invest the Commonwealth Funds under his custody.
(2) First mortgages secured by the Federal Housing Administration and by the Veterans Administration.
(3) Undivided first mortgages on improved real estate free of encumbrance. For improved real estate shall be understood lots in urbanized areas whereon are located permanent buildings for residential purposes.
(4) Undivided first mortgages on improved real estate, free of encumbrance, devoted to hospitals.
(5) First mortgages on improved real estate, free of encumbrance, guaranteed and/or insured by the Puerto Rico Housing Bank or its successor or successors.
(6) Shares in the Loans Portfolio of the Government Development Bank for Puerto Rico.
The amount of the total resources of the Fund to be invested in first mortgages shall not exceed seventy-five percent (75%) of the total invested from the Fund.
(7) During Fiscal Year 2015-2016, as well as during Fiscal Year 2016-2017, at least $15,000,000 shall be used to acquire tax and revenue anticipation notes issued by the Commonwealth of Puerto Rico from time to time and/or any other instrument issued by the Government Development Bank for Puerto Rico, for the purpose of acquiring said notes, regardless of the credit rating of such instruments or any limit or restriction in the investment policies or contractual obligations applicable to the Fund; Provided, further, That said notes or other instruments shall have a yield equal to or higher than the average yield of the Fund’s fixed-income investment portfolio for the twelve (12)-month period preceding March 31, 2015 and March 31, 2016, as appropriate, which shall not be less than a six-percent (6%) annual interest rate.
(e) Investment of interest earned.— The Secretary of Labor and Human Resources is hereby authorized to use the net income obtained from the operation of the disability benefit program established by this chapter for the development and strengthening of employment, training and retraining programs in private enterprise and the public sector. The Secretary shall depend on the regulatory powers conferred on him by this chapter to such ends.
The Secretary shall submit to the Governor and the Presidents of the House and Senate of Puerto Rico an annual report containing an evaluation of the program and his recommendations.
History —June 26, 1968, No. 139, p. 354, § 10; May 31, 1972, No. 85, p. 204, § 8; May 30, 1974, No. 47, Part 1, p. 204, § 2; July 23, 1974, No. 220, Part 2, p. 152, § 1; June 22, 1975, No. 56, p. 127, § 1; June 3, 1980, No. 82, p. 230; July 16, 1990, No. 13, p. 73, § 1; July 2, 2015, No. 102, § 2; July 14, 2016, No. 69, § 2.