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.
FSMSSA Board of Trustees holds its 4th Regular Meeting
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.
FSM Social Security Taxable Wage Base to Increase on January 1, 2018
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.
FSMSSA hires new Executive Assistant
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.
Pohnpei State Legislature calls FSM Social Security Administration for a Public Hearing
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.
FSMSS Board, FSM Banking Board and FSM Insurance Board Collaborate for Public Forum
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.
FSMSS Board of Trustees Meets for its 3rd Regular Meeting of 2017
For its third regular meeting of the year, the FSM Social Security Board of Trustees met in Pohnpei on September 9 and then continued the rest of its meeting in Kosrae on September 13.
The meeting was originally scheduled to take place in Kosrae, however, the board felt it prudent to attend to appeal cases which had been recently submitted from the state of Pohnpei.
Present at the meeting were Chairman Jack Harris representing Pohnpei, Vice-chairman Vincent Tafileluw representing Yap, Trustee Nakama Sana representing Chuuk, Trustee Kohsak Keller representing the National Government and Administrator Alexander R. Narruhn, serving as ex-officio member.
The major item on the agenda was a number of amendments to the law which Administrator Alexander R. Narruhn had come up with to combat the ongoing challenge of benefit payouts exceeding tax collections. Among the changes was an amendment to the tax provisions to allow collection of social security taxes from fishing vessels within the FSM waters. Early estimates indicated that this would net an additional $1.755 million in yearly tax collections. The administrator said the additional collections would go a long way in helping the program’s shortfall between collections and payouts.
As far back as the mid 2000s, the administration had been withdrawing funds from its Trust Fund to cover the shortfall. The FSM National Government had also been injecting funds into the system for the same purpose. The amendments were aimed at bridging the gap between collections and payouts thereby lessening the need for constant investment withdrawals. The other amendments include placing a cap on benefits, eliminating the taxable wage base, giving more options for retirees and other changes that were designed to help the administration in its efforts to make the system more sustainable.
Narruhn revealed to the board that he would be submitting another bill to congress for a $10 million loan from the National Government. This amount would be invested and earnings from this portfolio would help cover the difference between collections and benefits.
The board expressed its support of the amendments and encouraged the administration to finalize and submit the bills as soon as feasible.
For the last item of the agenda, the administration presented to the board the financial statements and tax collection report for the previous quarter.
The Chairman of the Board, Jack Harris, expressed his gratitude for a successful meeting. The other members echoed this sentiment.
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.