PSTF needs $23M to pay beneficiaries in territories

The Prior Service Trust Fund may face bankruptcy by 2002 unless the US Congress appropriates the needed financial allocation to pay out more than 4,100 families in trust territories.

Arriving from a recent meeting held in Hawaii, Retirement Fund Board Chair Vicente Camacho disclosed the financial status of Prior Service was comprehensively discussed, exploring all other options to guarantee continued payment of recipients until 2045.

He explained that trust territories have been lobbying doubly hard at the US Congress to ensure fresh capital infusion and to send out benefits to families from the CNMI, Palau, Federated States of Micronesia, and the Marshall Islands.

Mr. Camacho said the Trust Fund has already exhausted its initial $8 million capital, and that efforts were beefed up last year urging the US government to appropriate $2.2 million to bankroll the program or it faces bankruptcy next year.

Under the administration of President George W. Bush, Congress has appropriated $700,000 to re-finance PSTF and ensure sustained distribution of benefits to trust territories.

But PSTF Administrator Jerry Facey is upbeat that PSTF’s financial status is looking good, especially with the trust territories’ clamor for increased appropriation.

“We’re working with four government of trust territories, we’re lobbying hard asking the Congress to increase the appropriation from $700,000 to $1.2 million,” Mr. Facey said.

PSTF is also exhausting all possible efforts to convince the US Congress to make three lumpsum payment of the needed $23 million which will be distributed to families of trust territories, spread to the next 45 years of benefits.

The US Congress has to make $8 million allocation for the next three years to cover the capital needed by PSTF until 2045.

Once the needed $23 million allocation is complete, Mr. Facey disclosed plans to shut down the main office and distribute benefits to four governments which will be responsible in paying out recipients.

Based on 1968 records, at least 4,100 families from FSM, Palau, Marshalls, and the CNMI are eligible for the PSTF’s benefits and over 1,000 families are eligible if they would apply. On monthly basis, PSTF pays out more than 2,100 families. (EGA)