FSM Social Security Administration 
Lump Sum Benefits
1. When a worker dies and the benefits paid, including survivor benefits, have been less than four percent of his cumulative covered earnings, the survivors, heirs, or the estate of such individual shall be paid a lump sum benefit, after all rights to survivor benefits have terminated, in an amount equal to four percent of the decedent’s cumulative covered earnings, reduced by the amount of any benefits paid to the insured worker and his eligible dependents. Cumulative covered earnings includes earnings on which the individual has paid contributions to the Trust Territory Social Security System and the FSM Social Security System.
2. In the absence of a will, survivors shall be paid in the following order:
2. parents in equal shares; or
3. duly appointed legal representatives of the deceased or, if none, person or persons determined to be entitled thereto under the laws and customs of the last domicile of the deceased person.
Optional Lump Sum Payment to Individuals not Fully Insured Who Reach Retirement Age
Any individual who reached retirement age and who is not fully insured for Social Security benefits may, at his or her own option, elect to have a lump sum payment of four percent of his or her total cumulative covered earnings. If an individual elects to accept the lump sum payment, he or she shall lose credit for all quarters of coverage earned up to that point. If that individual returns to work, he or she shall start over again to earn quarters of coverage leading to being currently or fully insured. Only individuals who have resided in the Federated States of Micronesia for at least 1 year preceding their applications for these benefits, and who have either resided in the Federated States of Micronesia for a period of time of not less than 10 years total, or who were born in the Federated States of Micronesia, are eligible for this optional lump sum payment.