Palikir, FSM – September 25, 2024 – During a Congressional hearing on September 25, 2024, the Federated States of Micronesia Social Security Administration (FSMSSA) presented key updates and discussed critical issues facing the program’s sustainability and future funding strategies.
FSMSSA Administrator, in his opening statement, expressed his gratitude, acknowledging that thanks to congressional subsidies and salary increases within the FSM National Government and Pohnpei State Government, the administration has not yet drawn down from its investment portfolio this year. Additionally, the Administrator announced that the most recent actuarial study has been completed and will be released soon. This study will be instrumental in guiding the FSMSSA board and management on necessary changes to ensure the program’s long-term viability. All proposed amendments will be forwarded to the President’s Office for review, should there be necessary amendments.
Over the course of the hearing, concerns about efforts to reduce the administration’s reliance on congressional subsidies and increase of tax rate were heard. Administrator Panuelo, Jr. responded by stating that while there will always be a funding gap, management is committed to minimizing its dependency on government support through strategic budgeting and efficient use of resources. Pertaining to the tax rate increase, Administrator emphasized the need to be considerate of struggling businesses. FSMSSA is exploring balanced solutions that won’t overly burden employers while maintaining the program’s solvency. Administrator Panuelo, Jr. stressed that job creation and increase of salary is a better alternative solution than the raising of tax rate.
FSMSSA confirmed it is conducting a beneficiary survey to update its records. The survey is intended to verify beneficiaries’ current status, particularly those receiving benefits in the U.S. The Administrator clarified that recipients aged 60-64 are not required to submit IRS forms, but those working while receiving spousal benefits must comply with earnings tests.
The Administrator also addressed expatriate benefits, explaining that non-resident workers will receive a lump-sum payment of their total contributions to FSMSSA, provided they can prove they no longer reside in the FSM. Voluntary contributions remain an option for FSM citizens abroad or those without formal employment.
The hearing also discussed laws concerning remarriage and spousal benefits, as well as potential updates to adoption laws. Currently, remarriage—including customary or common-law unions—results in the loss of spousal benefits. Additionally, there is interest in revisiting the adoption age limit, currently set at 55 years old.
FSMSSA is committed to using the forthcoming actuarial study to inform future changes and improve the program. The administration will continue to work closely with Congress and the President’s Office to ensure that any amendments are thoughtfully implemented, considering both the immediate and long-term needs of FSM citizens.
FSM Social Security Administration
You can find us on the web at www.fsmss.fm. Or you can e-mail us at sspio@mail.fm or fsmssa@mail.fm
