Author Archives: Priana Andreas

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United States Department of Interior gives grant to Social Security Programs

The Prior Service Trust Fund (PSTF) is a supplemental retirement, disability and survivors’ plan established pursuant to Section 105(m) of U.S Public Law 99-239. It was established to continue to provide benefits to those who worked for the U.S. Navy Administration or the Government of the Trust Territory of the Pacific Islands for at least five years prior to July 1, 1968. In 1987, the United States Congress provided $8 million for initial capitalization of the PSBTF.

Effective April 1, 2006, the Federated States of Micronesia Social Security Administration assumed responsibility for benefit payments made to citizens of the Federated States of Micronesia. Beneficiaries of PSTF total about one thousand and lived in the Northern Mariana Islands, Republic of Palau, Federated States of Micronesia and Marshall Islands. FSM has a total of 450 beneficiaries who are currently receiving Prior Service Benefits.

In May 2016, the United States Department of Interior, Office of Insular Affairs (OIA), awarded additional money to the Prior Service Trust Fund Administration (PSTF) to enact and fully fund an increased cost of living adjustment (COLA) for all existing PSTF beneficiaries. It was an addition to the annual funds being received from OIA to maintain existing payments to PSTF beneficiaries.

In March 2018, the Prior Service Trust Fund (PSTF) was awarded funding through the office of Insular Affairs’ (OIA) Technical Assistance Program. A grant was awarded to fund Prior Service benefit payments to beneficiaries in the Commonwealth of the Northern Mariana Islands, the Federated States of Micronesia, the Republic of the Marshall Islands and the Republic of Palau. The grant included a partial funding award of $460,900 for PSTF benefit payments, will be available for the first six months of the next fiscal year. Additional funding will be awarded after OIA has received full appropriations for Fiscal Year 2018.

FSM Social Security recognizes all who had put in the effort to this success especially, with the help of the FSM National Government through a letter of funding request to the Assistant Secretary of the Interior for Insular Affairs, Mr. Douglas W. Domenech.

Through enthusiasm and support from the national government, PSTF funding remains a benefit to our beneficiaries.


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FSMSS Board of Trustees Meets for CY2017 Annual Investment Review

Category : Board News , Press Releases

Annually, the board meets to review the FSMSS investment portfolio with its investment consulting firm, Raymond James. During the meeting, the performance metrics for the previous year are reviewed in detail and presentations are heard from the portfolio’s investment managers. The portfolio has the usual asset classes including US equities, US fixed income, international equities and two alternative investment classes. These classes are further broken down into eight sub classes to allow for the most optimum diversity to ensure that the portfolio achieves a nominal return rate of 7.5% while keeping risk at an acceptable level.

The Annual Investment Review for CY2017 took place in Guam on February 8 and 9, 2018. Present at the meeting were Chairman of the Board and representative of Pohnpei, Jack Harris; Vice-chairman of the Board and representative of Yap, Vincent Tafileluw; representative of the National Government, Kohsak Keller; representative of Chuuk, Nakama Sana; and Administrator Alexander R. Narruhn serving as ex-officio member.
Daniel Roland and Jayson Miyashita of Asia Pacific Group, Raymond James facilitated the meeting as the portfolio’s full time investment consultants.

As of December 31, 2017, the portfolio was valued at $51,456,340 after a stellar year that saw a gain of 15.26%. This rate of return outperformed the policy index which was at 12.15% and exceeded the portfolio’s target performance of 7.5%. The best performing asset classes were stocks or equities which performed quite well during the year in the market overall. 2017 was also a good year for international equities which saw a rate of return of 27.46%.

The money managers that the board met with included representatives from Winslow Capital, Aristotle Capital Management, Tortoise Capital, Renaissance Investment Management, Adelante Capital Management and Garcia Hamilton & Associates.

During the meeting, the board decided to terminate the services of small/mid-capitalization core equity manager Golden Capital Management due to the fact that it had not sent representatives to the annual investment review for the second year in a row. The board decided to transfer 5% of the portfolio under Golden Capital Management to Renaissance Investment Management for investment in the international equity space and authorized the remainder of the funds with Golden Capital Management to be invested in the small/mid-capitalization core index.
The board members were pleased with the performance of the portfolio and encouraged the investment consultant and money managers to continue in their efforts to ensure that the portfolio continued to meet its target earnings.


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FSM Social Security Board of Trustees and Administrator attends APAFS 2017

Category : Board News , Press Releases

The Asia Pacific Association for Fiduciary Studies (APAFS) is a Guam based 501(c)3 non-profit educational and charitable association. APAFS was founded in 2000 by a forward thinking group of fiduciaries representing public and private institutional funds from throughout the diverse geographical area of the Asia Pacific
Region. Every year, FSM Social Security Board of Trustees and Administrator came in attendance to the 17th PRIC conferences. As the building body of the system, it had been a priority to extend their knowledge in every corner possible. They attended the educational expertise with APAFS to build more understanding and familiarize with the standards of practice among fiduciaries to continue the care for funds within the Social Security System. As an outcome to attending such conferences, FSMSSA looks forward to their more accomplishments in their learning process as to become AIF designees. The goal of APAFS is to raise the level of understanding and standards of practice among fiduciaries in the region by providing educational programs and opportunities, so that they may provide the most prudent stewardship of the funds entrusted to their care.

As a result, FSMSSA Administrator Alexander R. Narruhn is currently serving as a member of APAFS Board of Governors.


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FSM Social Security Conducts a Survey for its Beneficiaries of Pohnpei, Chuuk, Yap, Kosrae and Abroad

Category : Press Releases

In every two years, FSM Social Security conducts a survey to all receiving benefits from the program, either living in the FSM or abroad. The survey was conducted in all four states and outer islands beginning August and ending November 2017. Per FSMSSA regulations, the survey is the opportunity to update information on each of the beneficiaries, whether still eligible to be receiving benefits or not. Therefore, conducting the survey is the way to be accurately informed.

If you are a current recipient and your benefits suddenly discontinue beginning the month of August onward, the reason is because of the survey. You must fill out the Questionnaire form again after August onward in order to get your benefits back. Records indicated that there are still quite a few number of beneficiaries who are yet to fill and submit their questionnaires. FSMSSA would like to urge all who had not filed the survey to do so in order for your benefits to flow again.

The Questionnaire form may be obtained from our website, www.fsmssa.fm under the Forms section.


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Social Security Administrators holds a Joint Meeting

Category : Press Releases

A joint meeting between three Social Security Systems took place on December 7th, 2017 in Guam, USA. In attendance were FSMSSA Administrator Alexander R. Narruhn, Republic of Palau Administrator Ulai Teltull, and Administrator for Marshal Islands Social Security Saane K. Aho. FSMSSA programmer Jill Derickson and IT Manager Midion Neth Jr. were also present for important purposes. Hence, the purpose of the joint meeting was to amend on possibilities to share cost on a database system. The Fox-pro being used now at FSMSSA is not being supported by Microsoft, therefore, we look forward to changing our software within the next 3-5 years. With efforts, the FSMSSA is in the process of making proposals for grants to assist with funding. While the process of moving into the new program is pending, the three systems had agreed upon using the same database that Palau Social Security is using due to the fact that they all have the same files in each system’s database. FSMSSA and Marshall Islands Social Security had agreed to use the same program as soon as Palau Social Security finalizes their database. Further discussions are in process to accommodate the needs of the three Social Security Programs, which all look forward to a great success.


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FSMSSA Board of Trustees holds its 4th Regular Meeting

Category : Board News , Press Releases

FSMSSA Board of Trustees 4th regular meeting was held on December 4, 2017 . All board members including Chairman Jack Harris, Vice-Chairman Vincent Tafileluw, member Nakama Sana, member Kohsak Keller and ex-officio Administrator Narruhn were present including two FSMSSA staff, Comptroller Teresita Dayao and IT Manager Midion Neth Jr. The agenda was met as they entertained new business, which was based on Calendar Year 2018 proposed budget and very crucial items which needed discussion. The meeting followed the Board’s usual Agenda. Administrator Narruhn did an update, briefing the history of the system. The FSMSSA is one of the successor systems from the former Trust Territory Social Security System that closed its operation on March 31, 1988. The FSMSSA began its full operation on January 1, 1988. It is financed by employer/employee contributions at a rate of 7.5% each effective January 01, 2013. National, State, Municipal Governments and all private employers incorporated or doing businesses in the FSM are subject to social security tax. Effective January 01, 2018, the quarterly taxable wage will be increased to $8000. It is estimated that an additional tax collection of $143,850 will be generated from the increased quarterly taxable wage. The FSMSSA provides four basic benefits; retirement, disability, surviving spouse and surviving children’s benefits. The average monthly benefit payment for the ten-month period ending October 31, 2017 was $1,723,763 compared to $1,658,065 for CY 2016 or an average of 4% increase. Furthermore, the challenge remains, where every year benefit payments increase, therefore FSMSSA tries its best to make accommodations that would assist the longevity of the program. FSMSSA continues to assume responsibility for the Prior Service Trust Fund to its citizens even with the continuous funding by the US Congress and Department of Interior, and Insular Affairs. Department of Interior approved the funding request presented by PS Administrator Jerry Facey and Administrator Narruhn in May 2016, on behalf of all beneficiaries, for a cost of living allowance for all recipients of the Prior Service Program. The minimum benefit per month was increased from $27 to $50. In addition, Department of Interior also approved an ongoing annual cost of living adjustment of 3%. Funds received under the PSTF for the ten month ending October 31, 2017 amounted to $312,100 while benefits paid for the same period totaled to $227.793. The program awaits two pending bills in place, therefore if passed, the system shall have a sustainable future. An important matter also discussed was based on the planning and construction of a new office, which by now, the lot is in place. Other dreams came upon as, if the new building comes in place, another 5 year planning will be at hand, which is to accommodate a Credit Union within the new HQ office for our beneficiaries and participants. The Credit Union in a sense will benefit both the program and its people. At the offset, the highlights of FSMSSA financial report and Tax report were shared and discussed.


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FSM Social Security Taxable Wage Base to Increase on January 1, 2018

Category : Press Releases

November 24, 2017

FSM Social Security Administration hereby reminds the general public that per Public Law No. 16-10, the taxable wage base is scheduled to increase from $7,000 to $8,000 on January 1, 2018.

The purpose of the social security law is to effect economy and efficiency in the fields of government and business by providing a means whereby employees may be ensured a measure of security in their old age and given an opportunity for leisure without hardship and complete loss of income. Further, to provide survivors’ insurance for wage earners and their dependents.

The increase is part of several amendments that were enacted to improve the short term as well as long term viability of the program.


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FSMSSA hires new Executive Assistant

Category : Press Releases

FSMSSA welcomes Luan Lavern Gilmete aboard as the new Executive Assistant. The Executive Assistant aims to assist and support FSM Social Security Administration senior management in ensuring the orderly, expeditious and timely operations of Headquarters and Branches and, as the Headquarters’ Receptionist, present the “Public Face” of the FSM Social Security Administration in a courteous, supportive and pleasant manner to all inquirers including governments, institutions, private enterprises and the general public.

On October 16, 2017, Ms. Gilmete hopped in the office and began her new experience. Upon being selected out of the many who applied, she was honored that the program noticed her qualifications and skills suitable for the job. She looks forward to be as diligent as an employee and shall try her best to serve the people of FSM especially those who needed most assistant so the services they deserve could benefit them by all means. With expectations, she expects to learn the system’s regulations, which would assist her in serving all beneficiaries to the best of her ability.

After graduating from the College of Micronesia-FSM, Luan began her work experiences at the FSM National Archives for 6 months. She was responsible for inputting data into their system as well as converting their archives into different sources for public’s use. After her 6 months training, she was then hired at the office of Talent Search Program, a federal program under COM-FSM, where she assisted in molding young minds of high school students with Peer Tutoring in Math and English. In March of 2014, she began another experience at International Organization for Migration (IOM) as a CADRE Trainer, where she was responsible to meeting with school principals, conducting educational outreach to schools, communities and groups of people. The outreaches were based on climate change awareness to all. She then journeyed to Fiji early 2015 to continue her studies, whereas, she returned recently and now working with FSM Social Security Administration.

Luan Lavern Gilmete is 24 years old and living with her family in Pohnpei. She had recently returned from Fiji after some years of studying at the University of South Pacific in Journalism/Education. Prior, she attended the College of Micronesia for two year where she attained her A.S. Degree in the field of Marine Science. She was a Xavier High graduate in 2011.

She loves cooking and reading books.


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Pohnpei State Legislature calls FSM Social Security Administration for a Public Hearing

Category : Press Releases

On the afternoon of July 11, 2017, a public hearing was held at the Legislature Conference Room with the Committee of Health. For the purpose of obtaining information and updates, the committee called upon the FSM Social Security Administration for a hearing.

At the onset, Senator Shelten Neth, Chairman of Health Committee, opened with introductions and welcoming remarks. Present on their behalf was Chairman Neth including Vice Chairman Etschiet, Vice Chairman of J&Go Amor, Vice Chairman of Finance Committee Isaac, and Senator Ioanis, member. Also present were Assistant AG Johnny, Director of State Finance Perman and Councilwoman Reim.

On the other side, Pohnpei Branch Manager Leon Panuelo Jr. was present on behalf of Social Security Administration.

Chairman Neth opened up and welcomed everyone present, and introduced the purpose of the hearing, which was to follow up on the status of the FSMSSA and be informed about more recent information.

A discussion was kicked off about the changes with Social Security Benefits and the purpose of the changes, as well as suggestions of joined benefits between the FSMSSA and the United States. Another general question was based on the Voluntary Contributions plan that the system has, and suggestions for Public Awareness on current information about the program were provided. The people of FSM especially farmers, fishermen and others need to be informed about such programs, as awareness of the existence of such programs was not widespread.

Other concerns touched on the retirement age and why it is as is. Branch Manager Panuelo, on the Administration’s behalf provided a presentation that really brought their attention to the issues the program is faced with. He mentioned that the changes were needed for the sake of a livelong program, for the benefit of today’s citizens and future generations. All changes are based on studies which results in funding. In line with funding, actuarial studies are necessary to gauge the current and future sustainability of the program. In terms of the Voluntary Contributions plan, there are still active members, mostly abroad, and information on the plan could be found on the Social Security website, www.fsmssa.fm.

Therefore, FSMSSA looks forward to improvement of public awareness on this plan. Mr. Panuelo further stated that the program has been doing its best to do amendments that would sustain the life of Social Security for its citizens.

The hearing was a great opportunity to disseminate information to the leadership of Pohnpei and garner its support in the administration’s efforts to improve the program.

 


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FSMSS Board, FSM Banking Board and FSM Insurance Board Collaborate for Public Forum

Category : Press Releases

In the past, the FSM Social Security Board of Trustees had held public forums in the four states as a way to directly hear the public’s questions or concerns regarding the FSM Social Security Administration.

To coincide with its 3rd Regular Meeting of 2017, the board scheduled a public forum for the people of Kosrae on September 15 in the annex of the Kosrae State Legislature chambers. In an unprecedented move, the forum was held in collaboration between the FSM Social Security Board of Trustees, the FSM Banking Board and the FSM Insurance Board.

This allowed the citizens of Kosrae a chance to ask questions not just on social security but also on banking and insurance in the FSM.

The FSMSS Board of Trustees consisted of Chairman Jack Harris, Vice-chairman Vincent Tafileluw, Trustee Nakama Sana, Trustee Kohsak Keller and Administrator Alexander R. Narruhn serving as ex-officio member.

While the FSM Banking Board and FSM Insurance Board were legally two separate entities, the members were the same for both boards. The members were Chairman Alexander R. Narruhn, Lt. Governor Reed Oliver and Joe Habuchmai.

Before the floor was opened for questions from the audience, each of the three entities made a short presentation on general information for each entity and the challenges they faced. The FSM Social Security Administrator Alexander R. Narruhn, FSM Insurance Commissioner Jesse Giltamag and FSM Banking Commissioner Nakama Sana each made a presentation about their respective agencies.

While the turnout did not meet expectations due to other public events that occurred in Kosrae on the same day, the questions and concerns that were raised by the audience proved to be insightful and helpful. The representatives of the three entities were able to identify some of the issues that the citizens of Kosrae were facing with regards to social security, banking and insurance.

The audience was assured that their concerns were noted with the promise that the entities would dedicate their efforts to resolving those issues.