FSMSSA welcomes new hires on board

The FSM Social Security Administration, in servicing the island nation’s citizens, holds public awareness of the program and its affairs a priority.

FSM Social Security hires new Branch Assistant Manager

The FSMSSA Pohnpei Branch office announced a vacancy for the Assistant Manager position. Many capable individuals applied and as per procedure, one person was selected out of the many qualified individuals that applied.

The Assistant Manager at the branch office plays a very important role in the work structure of the office for its aim is to assist in ensuring that the requirements of FSM Social Security Law and FSM Social Security Administration policies, processes, procedures and practices are fully fulfilled at State level and that government’s and public’s understanding is good of what are the requirements and benefits of FSM Social Security Law, in particular for employers, employees and beneficiaries.

It requires great dedication and much energy, therefore, after a very careful selection; Trueleen J. Albert was hired as the new Pohnpei Branch Assistant Manager. Trueleen is a local from the village of Saladak in Uh municipality, Pohnpei State. She is married with three kids and a grandson. When not in the office, she dedicates her time to her family. She graduated from Saladak Elementary, then on to Bethania High School in Palau and the Community College of Micronesia as it was called before and received her certificates in General Studies.

In mid 1990’s, she worked various jobs, as she was employed at the Pohnpei State Office of Personnel, Labor & Manpower, Division of JTPA. Six years later, another opportunity called and she was then employed at the Peace Corps office FSM/Palau. She served in this job until she was employed on July 26, 2017 at the State Social Security office as Assistant Branch Manager.

Truleen was indeed very appreciative for another opportunity to serve the citizens of the country. She personally mentioned she was grateful for the opportunity to gain new knowledge and experience, and looked forward to the challenges the position brings. She looks forward to getting to know everyone and help continue the work done to support the senior citizens of the nation.

When asked what her vision or goal was, she replied, “My vision or goal as an employee is to take this new journey with an honest approach and open minded in enforcing policies, procedures and assisting both employers/employees in compliance to social security tax regulations, avail myself in serving social security beneficiaries with good judgment.”

With the nature of work at FSMSSA, Trueleen expects all to be a team for team work is the key to a healthy working environment. Moreover, everyone is expected to be professional and respectful of each other. It would always help if in such working environment, constructive feedback be provided to each other for the purpose of being accountable and responsible.

FSMSSA welcomes Mrs. Trueleen J. Albert aboard and look forward to be benefited for she would be an asset to the program.

You can find us on the web at www.fsmssa.fm.

Or you can e-mail us at sspio@mail.fm or fsmssa@mail.fm

FSM Social Security Administration hires new Tax Assistant

Twenty-four years old Johnny-lu Panuel was hired as the Tax Assistant in the Tax Collection Division at the FSM Social Security Administration on August 7, 2017.

Responsibilities for this position include assisting the Tax Administration Officer’s duties of enforcing quarterly Social Security tax payment and employer’s reporting requirements. This position reports directly to the Tax Administration Officer. This is a very team-oriented and highly interactive position specifically with all the branch offices.

Mr. Panuel was well suited and qualified for the challenges inherent to the position. Panuel is from Pohnpei. He is a college graduate with an AA degree in Liberal Arts. His other notable education achievement was graduating from Xavier High School.

Johnny-lu has began his work experience in the private sector as the Assistant Manager and cashier at Gleetoes Store from 2012 until 2017. Earlier this year he was the Data Encoder at International Organization for Migration (IOM), until he was hired at the FSM Social Security as the Tax Assistant.

Upon being hired, he felt privileged and was excited to be a part of the FSMSSA’s efforts to accomplish its goals. He further stated, “Clear communication, team work and team effort is what I hope for when it comes to work and coworkers.” He wishes to give his best and is thankful for the opportunity to be part of the team serving the citizens of the FSM.

You can find us on the web at www.fsmssa.fm.

Or you can e-mail us at sspio@mail.fm or fsmssa@mail.fm

Survey to Beneficiaries residing in Pohnpei

Federated States of Micronesia Social Security Administration

PRESS RELEASE

P.O. Box L

Kolonia, Pohnpei FM 96941

Tel: (691)320-2706/2708/4407

Fax: (691) 320-2607

The FSM Social Security Administration, in servicing the island nation’s citizens, holds public awareness of the program and its affairs a priority.

August 18, 2017

Announcement: August 2017 Social Security Beneficiary Survey at our Pohnpei Branch Office

The FSM Social Security Administration will conduct a survey on all Social Security Beneficiaries to get an update on their current status in ensuring that they remain in compliance with applicable Social Security laws and regulations. During the survey each SS beneficiary is required to complete a questionnaire form before getting his or her SS benefit check. As such, all Social Security benefit checks for the end of this month, August 2017, will be distributed at our Pohnpei Branch Office following the schedule shown below:

• MON, 08/28/17 :    ALL BENEFICIARIES WITH FIRST NAMES BEGINNING WITH LETTERS: A–E
• TUES, 08/29/17 :    ALL BENEFICIARIES WITH FIRST NAMES BEGINNING WITH LETTERS:  F – L
• WED, 08/30/17 :    ALL BENEFICIARIES WITH FIRST NAMES BEGINNING WITH LETTERS:  M-P
• THUR, 08/31/17 : ALL BENEFICIARIES WITH FIRST NAMES BEGINNING WITH LETTERS:  Q –Z

Please be informed that each SS beneficiary is required to be personally present at our Pohnpei branch office to complete his or her own questionnaire. If you are unable to come in in-person because of serious illness and disability, a family representative with a notarized and valid limited power of attorney may execute your questionnaire on your behalf. In absence of a power of attorney, family representative would not be allowed to act on your behalf. In such cases, Social Security representative will visit you in person to help with your questionnaire as well as distribute your check. SS Administration (SSA) would really appreciate if you could let us know in advance of your situation so that proper scheduling of your own questionnaire could be arranged aside from aforementioned dates.

Social Security Administration humbly asks for your compliance with the above scheduling and its questionnaire requirements. Finally, Social Security Administration seeks and appreciates your patience during the survey so that it may be conducted smoothly and completed in an orderly manner.

If further clarification is needed, please contact our Pohnpei branch office at:

• Telephone numbers: (691) 320-2709 and 320-2181
• Email: pohnpeissa@mail.fm

Thank you all.

Management

Reintroducing the FSM Social Security Voluntary Contributions Plan

The FSM Social Security Administration wishes to invite all interested FSM citizens working abroad to participate in the program. Public Law 14-86, which was passed on October 23, 2006, created a new provision within the social security law that would allow a citizen of the FSM working abroad to voluntarily contribute into the system to earn the right to benefits. FSM citizens who are actually working outside of the FSM, Palau or Marshalls can make voluntary contributions. If you are interested to apply, you may find the enrollment forms on our website at www.fsmssa.fm and fill them out. Once these forms are filled and sent to the main office for processing, the citizen only has to worry about feeding his or her savings account, so there would be enough to contribute from. After every transaction, a receipt will be sent to the contributor while the bank documents the transfer in the contributor’s passbook. Voluntary contribution for citizens working abroad through the ACH program is even a better option for the citizen running business as sole proprietor, since the individual is paying as if he or she is self-employed (14% not 7%), this way one could contribute enough to become fully insured in no time at all.

Who is Eligible to apply?  

A person who is self-employed or working outside of the FSM, Republic of Palau, and Republic of the Marshall Islands may voluntarily contribute to the Social Security system under certain circumstances and receives quarters of coverage and accumulate payments to their minimum contribution requirements. It applies also to FSM citizens now. For persons who are self-employed sole proprietors with no employees in the FSM, which can include farmers and fishermen, and who make less than $10,000.00 per year, may make contributions to the Social Security System. The person will be deemed to make $1,250.00 per quarter, and they must pay the employee and the employer’s share. After January 1, 2013, the payment is $93.75 for the employee’s share and $93.75 for the employer’s share, totaling $187.50 per quarter. Any self-employed person electing to make such voluntary contributions must file quarterly returns and is subject to the same deadlines as any other taxpayer. If revenue received by a self-employed person is $10,000.00 or more, they are subject to the regular mandatory contribution provisions. For persons who are self-employed or regular employees outside of the FSM, Republic of Palau and Republic of the Marshall Islands, they may make voluntary contributions to receive quarters of coverage and to accumulate payments to their minimum contribution requirements, even if they are contributing to another Social Security system. The person must make payments to FSM SSA in the FSM, and file a quarterly return. Any person making these voluntary contributions is subject to the same deadlines as any other taxpayer. The person must also pay both the employee and employer’s share of the social security tax. The minimum declaration of earnings is $1,250.00 per quarter, but the employee may declare more earnings, and pay the tax on the earnings declared.

Voluntary Contributions for FSMSSA’s Monthly Retirement Benefits

A participant is eligible to all types of benefits, not just retirement. Moreover, you can pay social security taxes as a sole-proprietor without employees with a gross revenue below $10,000 each year and report your quarterly tax returns in the fair amount of only $187.50 in each quarter. You do not have to apply for a job, yet contribute for a better future which you greatly deserve. Without the voluntary contribution program, you would be left out of the system. The voluntary contributions allow participants to earn eligibility while residing abroad. Feel free to contact us for more information.

FSM Social Security attends Public Hearing at Congress

A Public hearing was conducted with Congress on May 24, 2017 at 2:30 p.m. at Palikir, where FSM Social Security Administration was tasked to present its Financial Statements to the Committee of Health and Social Affairs. Present on our behalf were Trustee Sana, Administrator Narruhn, new nominee for the Board Kohsak Keller, Comptroller Dayao and Tax Admin. Officer Jonas. The chairman of the committee Senator Ferney S. Perman was present alongwith Vice Speaker Moses, congress Counsel Catherine,  Yap Delegate Congressman Urusemal and a delegate of Chuuk, Senator Konman. Present also was Mr. Belsasar representing office of the President. At its onset, Chairman Perman welcomed everyone to the new facility and suggested that they began discussion with the new FSMSSA Board of Trustee nominee Mr. Kohsak Keller, then moved forward. A question was raised from the committee Chairman regarding how a Board member was selected and the response to that was, “it was a selection of the FSM President.” Keller stated that upon a conversation with His Excellency Christian, the subject got his interest and he did what was advised after sharing his experience in his field of work in the previous years. Mr. Keller himself shared his interest in the vacancy as a Board Member, so he became the nominee for the national government representative for the FSMSSA Board of Trustees. He stated his wish to support the system in terms of Actuarial for example and do the job as a Board member. The hearing continued with FSMSSA’s financial statements presentation which was given by Administrator Narruhn. Administrator did an overview of the system, shared updates on management and touched on claims as well. In the table below, you will find its financial statements as of the presentation. The committee was well informed about the status of the system and clarified on some subject matters they were not really sure about. It was great they managed to exchange thoughts and ways to support the FSM Social Security in terms of services to all old, current and living beneficiaries. The hectic exchange of thoughts and comments went well. There were no promises that the contribution will either keep coming or stop, but there are dedicated members who understood the need that FSMSSA has had. With all said and done, Chairman Perman thanked FSMSSA for responding to their request upon the public hearing and wished everyone for the best in the working together process. He then closed the hearing by thanking everyone present for allotting time for such important matter.

FSM Social Security Board of Trustees holds 2nd Regular Meeting 2017

FSMSSA Board of Trustees held its 2nd Regular meeting of the year beginning April 28-29, 2017. The Board of Trustees’ meetings usually took place in the four states interchangeably, for the need of appeal case hearings and other businesses relating to the system’s needs. This quarter’s meeting was held in Pohnpei as the need to appeal hearings arose. The present Board members included Chairman Jack Harris representing Pohnpei State, Vice Chairman Vincent Tafileluw of Yap, representing Chuuk State Trustee Nakama Sana and Ex-Officio member Administrator Alexander R. Narruhn. As of date, Kosrae and National Government representatives are both vacant. Other attendees included Deputy Administrator and  investment consultant Daniel Roland, Managing Director of Raymond James. Consultant Roland was present for the investment review for FSMSSA, where he presents to the Board the status of the program financially and advised on money manager’s statuses and so forth. He did updates on these managers to make sure the program is in good hands regards to its finances. The Board as well entertained four pending appeal cases during its meeting. They then had the chance to come to their conclusions on each case. With the process, the appellants appeared in front of the Board to deliver their testimonies including some questioning from the Board members and with all the information gained and gathered, finally they could make decisions on the cases either to hold, deny or uphold decisions. This time the cases were taken care of and the meeting moved forward with reports and updates from the Admin. In its financial reports, Comptroller Tessie Dayao provided the presentation based on a comparison of two years 2015 vs. 2016. At the year ending 2016, net asset stood at $50,291,125 with a difference of $570,633 compared to 2015 which was $49,820,000. This amount consisted of 89% of the investment market value which is $44,818,947 and 11% consists of the accounts receivables and other accounts. Liabilities reduced at $181,000 which consists of payables to vendors, payroll liabilities and payables to beneficiaries.  As for collections $18,638,211 is an increase of 5.5% in 2015 with $17,674,000. The reason for the increase was based on an analysis made, which included the more new employers currently paying into the system compared to the previous year, meaning employers were paying more on their taxes that time. The second factor in the increase in collection of delinquent quarters increased by 90%. The 5.5% growth rate of 2016 may not be sustainable. Collections for first quarter 2016 increased, yet compared to first quarter 2017, it was flat, no increase. It was $4,660,000. there were new employers in 2016 that contributed about $16,000. Benefits increases by 3.5% to 19,906,488. the growth rate is 3.5% as compared to the previous year of 1.3%, so benefit is getting higher again. Total number of beneficiaries increased as of 2016 which equals to 6,473.  Admin expense was reduced by $34,397 or 2.8% reduction. The Board was again updated on the financial status of FSMSSA and the meeting carried on. In conclusion, the Board members each shared their remarks from their respective states including concerns from their people. Chairman thanked everyone for the effort in making to the meeting and appreciated all the work done throughout the hectic days.

FSMSSA Participates in a Series of Due Diligent Meetings

    Jack Harris, Chairman, Board of Trustees, FSM Social Security, accompanied by FSMSSA Administrator Alexander Narruhn, and Daniel Roland, Managing Director of Raymond James, investment consultant to FSMSSA, conducted a series of due diligence review meetings at the home offices of service providers in the U.S. Visited were three of the investment advisors currently retained by FSMSSA; the FSMSSA investment consultant; and, the consulting actuary. The due diligence visits were held from Friday June 2, 2017, through Tuesday, June 6, 2017 and was convened at the Oakland, California offices of Adelante Capital Management (ACM). ACM has managed a Real Estate Investment Trust (REIT) portfolio for FSMSSA since 2015. In attendance from ACM were Michael Torres, CEO, Adelante Capital Management; Jeung Hyun, Portfolio Manager, Adelante Capital Management; and, Thomas Budinger, Vice President, Adelante Capital Management. A number of issues were discussed, including the historical performance of the FSMSSA Trust Fund account managed by ACM; the future outlook for REIT’s; and, among other things, the status of ACM as an ongoing firm. Mr. Roland questioned why since 2008, firm assets had declined substantially. The ACM’s response was that it was directly a result of the 2008 global financial crisis and the resulting flight to safe havens, such as bonds. In ACM’s case, it was exacerbated by their client base being highly concentrated in large public funds. They also met with Tortoise Capital Advisors, LLC ((TCA), whom has managed a Master Limited Partnership (MLP) portfolio for FSMSSA since 2015. As with ACM, the review began with a presentation on historical performance, and the outlook for the future. The fact that MLP price fluctuations were wildly disproportionate to their underlying valuations based on cash flow was discussed in-depth. It was noted that the prices more recently have been highly correlated to spot oil prices, and not reflective of the underlying yields and future income growth. TCA mentioned that large institutional investors had been adding to their MLP exposure since the steep drop in prices. The next sets of meetings held were with Robert Burns, Director, Institutional Consulting Services; and, Griffin Suit and Jake Norris of Asset Management Services. They addressed the performance reporting, asset allocation and investment manager research functions they are responsible. Of key concern to the Administrator were the occurances in custody reporting with respect to following month adjustments. Mr. Burns indicated that this would occur, infrequently, when correcting data was received after statements were generated. Possible scenarios to address this were discussed, to include delaying statements for several days, as well as upgrading reporting to the Clearwater System. Finally, on Tuesday, June 6^th, a due diligence meeting was held with Jonathan Cangelosi, Principal, of Golden Capital Management (GCM). GCM has managed small/mid cap equity portfolio for FSMSSA since 2008. After addressing performance of the portfolio, which was deemed acceptable, the discussion centered about the possible effects that might occur due to the purchase of the remaining shares of Golden Capital not only held by Wells Fargo. Mr. Cangelosi was insistent that there should be no negative impact as all principal investment professionals were tied to the firm by contract, and that Wells Fargo had no intention of involving itself in the investment management process. The rest of the meeting was discussions with the actuary, Joe Nichols, about cost statements needed for the upcoming proposed legislation and ways in which the benefit formula can be amended to help place the fund in a more sustainable state. They as well discussed the contract and timing of the next actuarial valuation and an experience study, which its main function is to examine the mortality experience of FSM and from that, to build the mortality table used in their calculations.  At the conclusion, the Chairman made it clear that FSMSSA would continue to watch developments closely.