1. SOCIAL SECURITY PENSION WORKSHOP
April , 2016
Majuro, Republic of the Marshall Is.

2. N H I

3. MONTHLY CONTRIBUTION REVENUE/OTHER INCOME
MONTHLY BENEFIT PAYOUT
$525,000.00
$740,000.00
SHORTFALL
$215,000.00

4. and ACTIVE MEMBERS 3,318 CURRENT CONTRIBUTORS $5,800,000.00
ANNUAL CONTRIBUTION
REVENUE
ACTIVE MEMBERS
$5,800,000.00
and
3,318
CURRENT CONTRIBUTORS

5. RETIREES
ANNUAL BENEFIT PAYMENT
$8,880,000.00
and
1,542
BENEFICIARIES

6. $8,880,000.00 $6,300,000.00 ANNUAL CONTRIBUTION REVENUE/OTHER INCOME
ANNUAL BENEFIT PAYMENT

7. MONTHLY
CASH DRAWDOWN
$2,940,000.00
AVERAGE $245,000

8. $13,421,000 ($2,980,000) ($9,570,000) ($471,000) ($400,000) MONEY IN
DEPOSIT
$13,421,000
($2,980,000)
($9,570,000)
MONEY OUT
($471,000)
($400,000)

9. MONTHLY
CASH DRAWDOWN
$2,940,000.00
AVERAGE $245,000

10. $47 Million
FY 2007
$19 Million
$28 Million
FY 2015

11. RPPL No. 4-2
RPPL No. 4-10
Borrow money from future retirees
Minimum benefit of $50.00
RPPL No. 4-49
RPPL No. 5-41
$172,000,000
RPPL No. 5-45
RPPL No. 6-12

12. $28,000,000
September 30, 2015

13. $172,000,000
$28,000,000
UNFUNDED ACCRUED LIABILITY
$144,000,000

14. RPPL No. 9-2 (Became a law on April 30, 2013)
1. Pension Plan Reformed Act
2. Provided for a continues new source of revenue to our Plan.
RPPL No (Became a law on August 28, 2014)
1. Amendment to existing law redirecting 15% share of
Foreign Fishing Fee to our Plan to payoff prior year
debts.
When Bill
signs a bill
RPPL No (Became a law on October 28, 2015)
1. Palau National Marine Sanctuary Act
2. Allocated $25 of the Environmental Impact Fee

15. SO…………
WHAT’S THE FINANCIAL IMPACT

16. RPPL No. 9-2
Remittance Tax Revenue collection in Fiscal Year 2015 is $365,000
RPPL No. 9-35
Now is the time for
All good man to come
To the aide of their
country
So what is the bottom
Line.
Estimated Revenue per year from 15% of Foreign Fishing Fee is $130,000
RPPL No. 9-49
Estimated annual revenue collection based on RPPL No is $3,750,000
$ 4,245,000
So……What’s the financial impact…(Estimated)..?

17. $ 5,800,000
$ 495,000
$ 3,750,000
$13,421,000
$10,045,000
$3,376,000

18. MONTHLY
CASH DRAWDOWN aa
$2,940,000.00
AVERAGE $245,000

19. $ 18,383,508

20. $ 27,143,000

21. $ 40,884,387
September 30, 2006

22. $ 18,383,508
$ 8,759,492
$ 40,884,387
September 30, 2006

23. $ 68,027,387 If we did not withdraw funds from
our investment during the last 10 years
FAIR MARKET VALUE OF OUR INVESTMENT
AS OF SEPTEMBER 30, 2015

24. INCREASE CONTRIBUTION LEVEL
Possible Actions
INCREASE CONTRIBUTION LEVEL
Employer by 4% we’ll realize additional income of $ 1,871,982 p/year
Employee by 2% we’ll realize additional income of $935,991 p/year
REDUCE BENEFIT LEVEL
Reduce Benefit by .1%
SIN TAX APPROPRIATION
5% Appropriation of Sin Tax to our Plan will give additional $ 482,000 p/y
$ 1,000,000 appropriation annually

25. KEY TAKEAWAYS Be vigilant Utilize all available media outlets
Provide accurate and relevant information
Educate your lawmakers and stakeholders
Enlist the help of the stakeholders
Be part of the solution

26. KOMOL