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Long-term solution for Prior Service benefit sought
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Posted on May 15 2008
The presidents of the Federal States of Micronesia, Republic of the Marshall Islands, and the Republic of Palau, along with the chief executives of the CNMI, Guam, and Yap, Chuuk, and Kosrae held their 9th Executive Summit in Koror, Palau late April.
The Prior Service Trust Fund benefit program was one of the issues discussed at the summit, specifically the long term funding dilemma which requires an estimated $13-million lump sum appropriation in order to capitalize the benefit program over the next 40 years.
Prior Service provides supplemental benefits to Micronesians for service with the United States Navy and the Trust Territory of the Pacific Islands Governments between 1944 and 1968.
The chief executives agreed with the Prior Service recommendation for their respective ambassadors and the CNMI Washington Representative to work closely with the Department of the Interior and the United States Congress to find a long-term funding solution.
The conferees also signed joint letters to President Bush and DOI Secretary Kempthorne which draws their attention to the long term overdue funding problem and more importantly to request their support for an appropriation which will capitalize the fund until around 2045 and insure the uninterrupted payment of benefits.
For the last several years Prior Service has had to rely on an annual appropriation grant, which at one time, was delayed and caused the interruption of benefits due to lack of funds.
Since the inception of the program in 1969 over $20 million has been distributed in retirement, survivors and disability benefits to beneficiaries throughout Micronesia as well as Guam and the U.S. mainland.[B][I] (PR)
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