Category: Press Releases

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  

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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

Koror, Palau – August 26, 2024 – The FSM Social Security Administration (FSMSSA) proudly participated in the 35th Annual Association of Pacific Islands Public Auditors (APIPA) Conference, held in Koror, Palau. The event brought together over 500 participants from across the Pacific, including government officials, auditors, and finance professionals, all united under this year’s theme, “Bridging the Gap of Public Accountability and Transparency.”

The conference focused on enhancing the integrity and effectiveness of public audit and finance systems throughout the Pacific region. It provided a vital platform for FSMSSA personnel and other attendees to exchange knowledge, share best practices, and discuss innovative strategies to strengthen public accountability and transparency in government operations.

Participants of the 35th Annual APIPA Conference engaged in a series of workshops, panel discussions, and networking opportunities, all aimed at improving the governance and financial management systems of their respective institutions. The FSMSSA representatives gained valuable insights and tools that will contribute to the continued enhancement of accountability measures within the administration.

The FSMSSA remains committed to upholding the principles of transparency and integrity, and participation in the APIPA Conference underscores the administration’s dedication to fostering strong governance and public trust across the Federated States of Micronesia.

FSMSSA was invited by the Pacific Financial Technical Assistance Center (PFTAC) to participate in a workshop in Majuro, September 18-20, 2019. The workshop was a joint event organized and delivered by three PFTAC programs including Real Sector Statistics, Revenue Administration and Macroeconomic Programming. The purpose of the event is to bring together senior tax administration officials with senior officials from the National Statistics Offices of all PFTAC member countries to discuss the of ‘Use of Administrative Data in National Accounts’ particularly the importance of effective mechanisms for the secure sharing of tax and social security data with National Statistics Offices (NSO).

Chairman Harris and Deputy Ilai joined discussions over the course of the workshop from beginning to closing. It was for the program’s benefit that attending such workshops are highly recommended to the leadership of the program. The program always builds up its strength in such trainings and workshops. The presentations given were fully effective to building and refreshing knowledge of participants. FSMSS program looks forward to attaining its stability from all these resourceful information and on those who gained them to support the program with.

 

In the early weeks of September, FSM Social Security Administrator Alexander R. Narruhn attended the Northwest Leadership Conference 2019 on Makur Island, outer islands of Chuuk State. Administrator Narruhn shared a presentation to the large group, an overall presentation based on functions of the program. Detailed information about social security benefits were discussed, including eligibilities to retirement and other types of benefits. The different types of benefits were introduced with its requirements. Administrator’s presentation touched on the program’s Financial Statements audited and unaudited from 2016 to 2019 as well as its Investment Fund Performance. Tax collections especially delinquency was introduced as it remains a major problem to the program’s tax collections. Along with the challenge of delinquency, FSMSSA also face more of which, benefit payments exceeding tax collections, downsizing of government and closing of several major businesses, increase number of beneficiaries and low funded ratio, high unfunded accrued liability. These challenges are on hand and as much as the Administration tries to battle with, still comes on the way due to the giving and receiving processes of the program. Therefore, the program gives more than it collects. Otherwise, the Administration never gives up fighting these challenges finding ways to support the program and keep on right track to its purposes.  Lastly, there are pending amendments in process to support the program in every way possible for its longevity.

 

The Association of Pacific Islands Public Auditors (APIPA) was formed in January 1988 through a Memorandum of Understanding (MOU) that was executed by the heads of the audit organizations of five Pacific Island nations. It was formed to achieve its objectives, mainly to establish an organized body to act as one voice in support of the goal of promoting efficiency and accountability in the use of public resources of emerging nations of the Pacific. It is a way to provide a forum for the exchange of ideas, experience, problems, and the identification of solutions which are often unique to the Public Auditors in the Pacific and sponsor auditing and accounting training workshops, in cooperation with established associations of the staff of member offices. Inclusive purposes includes identifying scholarship sources for Pacific Islander in need of financial assistance to study auditing and accounting at the post secondary level and promote public awareness for the purpose of conducting audits of public resources. Each year the APIPA Conference serves as the region’s premier professional development event for finance and audit professionals from throughout the U.S.-affiliated Pacific islands.

Whereas, eight (8) employees from FSMSSA inclusive of the branches attended the training, seeking more skills and knowledge to further their abilities in the area of their job goals they serve in this entity. These trainings at APIPA is always a way to refresh and help them carry on doing the best they could in their expertise. It was indeed a great experience to the first goers, and continuing assistance to those been attending. They were all grateful to be attending sessions that greatly impact their knowledge which motivates them to serving the clients of FSMSSA the best way they can offer.