Monthly Archives: September 2019

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FSMSSA Employee Promotions

In February 2014, Robert Carlos (RC) began working at the FSMSSA as the Tax Assistant Officer. He had assisted the Tax Division in carrying out the duties of the division for years. Within the years he applied for another position in the Claims Division and was hired the Claim Analyst. As per duties differ in these Divisions, RC had different work experiences within the program divisions , which led him best qualified to be the new Claim Officer. Along with the qualities he possess and his work performance over the years, he had been promoted to be Claim Officer in May 2019. The Claim Officer reports directly to the FSMSSA Deputy Administrator. Responsibilities are to ensure that all claims made on FSM Social Security are processed in an entirely equitable, competent and on timely manner and that all beneficiaries of FSMSSA are treated strictly in accordance with the FSM laws and FSMSSA policies, processes, procedures and practices. The program looks forward to achieving its goals in terms referred to dealing with Claims within the Social Security System entrusting the work of this young man productively.

Briona Halverson had been with the program for over 10 years now. She began her experience with the FSMSSA Accounting Division as the Account Analyst. She had excelled with her duties in that division serving the program in so many years. With winds of change, she wanted to explore more and serve another division. Therefore, beginning May she started a new experience in the Claims Division as the Claim Analyst. The claim analyst is to assist the Claim Officer in ensuring that all aspects of FSM Social Security law and FSM Social Security Administration policies and practices, which relate to claims and associated matters, are rigorously conformed to at all times. With the skills and knowledge she possess, she is able to take on the new experience serving the claims division for all FSMSSA beneficiaries. She feels happy to be continuing serving the system under new job goals and her interest will surely assist her in support of task completions. FSMSSA looks forward to receiving good results as all employees always strive for to be better serving the FSM citizens.

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FSMSSA Board of Trustees meets for 2nd regular meeting

Category : Board News , Press Releases

The FSMSSA Board of Trustees held 2nd Regular Meeting in Chuuk on May 22-23, 2019. Every of these board meetings are held quarterly in and around the four states, as there may be a need to follow on pending appeal cases. With such matter, every quarter a Board meeting is called and inclusive of a special meeting when necessary. In attendance to this meeting were Chairman Harris, Vice-Chairman Tafileluw, members Sana, Nena, Falcam, Administrator Narruhn as Ex-Officio member, Deputy Administrator Ilai and FSMSSA Internal Auditor Win Thomas.

The Board were updated on FSMSSA division reports, mainly Financial and Tax Reports. The financial report specifies its net assets standing at $53.2 million as of March 31, 2019. Of this amount $48.6 million is accounted for the investment market value. The remaining $4.6 million represents cash, accounts receivables, travel advances, fixed assets and other assets. Liabilities of $148,031 include accounts payable to vendors, payroll liabilities for unremitted taxes, and payable to beneficiaries. Revenue grew by 5.7% to $5.0 million compared to $4.70 million in the same period last year. The increase is attributed mainly to the timing of Government bi-weekly payment in particular the Pohnpei State and Yap State which paid most of their 4th quarter 2018 taxes due January 2019. Benefits grew by 1.7% to $5.5 million compared to %5.4 million in the same period last year. The increase benefit is attributable to new claims and from retirees’ eligibility back to 100% of benefits. Administrative expenses amounted to $264,556 which represents 20% of the approved budget of $1.31 million. In March 2019, $1.0 million has been withdrawn from the investment portfolio to supplement benefit payments. Cash flow shows the actual sources and uses of cash. Collections were not enough to pay benefits and administrative expense, hence a cash deficit of $764,494. The cash deficit was funded by withdrawal of $1.0 million from investment trust fund.

Tax collection remains a challenge the program tackled with every day following its regulations on tax collection. As of 1st quarter 2019, FSMSSA’s total tax receivables was $5.2 million, which is 4% lower than the same period of last year. The major cause of this decrease has to do with lump sum payment of $254,228.83 to some companies in CY2018. The program’s tax collections struggles with out of the overall  delinquent employers, $3.3 million are either closed or inactive employers. About 64% of the total delinquent tax goes to these doubtful accounts and $1.9 million goes to businesses that are still operating and are currently able to pay off or make allotments to their delinquent balance. Still partial collections had been made up to 6% as of 1st quarter 2019 and FSMSSA Tax Division continues to push for more effort in collecting from refereed accounts.

FSMSSA Board of Trustees also had taken care of old or unfinished businesses along with new businesses and had received knowledge of recent communications and incidental report from Administrator Narruhn, inclusive of Social Security Amendments, results of public hearings and pending matters needed of Boards’ attention.

Finally, pending appeal cases were deferred to its special meeting in Kosrae, June 2019.


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FSMSSA attends Public Hearing with Health & Social Affairs Committee

FSM Congress committee on Health & Social Affairs called for a public hearing on May 17, 2019. FSMSSA responded with the presence of Mr. Jack Harris, Chairman of the Board of Trustees, Board Member Mr. Nakama Sana, Administrator Alexander R. Narruhn, and Deputy Administrator Francky Ilai. FSMSSA comptroller Ms. Tessie Dayao was in attendance. Committee members present included Chairman Ferny S. Perman and member Paliknoa K. Welly along with two Congress Legal Counsels.  The committee needed program updates especially on Financials of the FSMSSA. Administrator Narruhn presented figures that opens minds giving information that could be addressed to the whole Congress about the financial status of the FSM Social Security Program. With the exchange of questions and answers, both parties were satisfied on the given information, whereas, FSMSSA looks forward to the continuation of the subsidies given by Congress to support functions of the program, especially with any type of benefit.