1. Republic of Palau Social Security Administration Regional Pension Workshop 2016 Majuro, RMI

2. Presenters Ms. Jovalyn I. Koshiba Mr. Hefflin Bai
Employer Services Manager
Mr. Hefflin Bai
Member Services Manager

3. Financial Highlights 2016 Contributions (Revenues) Percentage
Total: $13,193,136
Government Contributions:
$6,462,649
Private Contributions:
$5,862,818
Penalties & Interest:
$701,327
Bad Debt-Tax (recoveries):
$166,341
49%
$44% 5% 1%

4. Contributions Policies
12% Social Security Tax
6% Employer
6% Employee
RPPL 9-12 increased Maximum remuneration from $5,000 to
$6000 on October 1, 2015
$8,000 on October 1, 2017
No maximum amount of remuneration on October 1, 2020

5. Benefit Policies
On August 20, 2013 a new law (RPPL 9-11 and RPPL 9-12) was signed by the President of the Republic to accommodate all beneficiaries.
Effective October 1, 2013 all benefits was increased by $50.00
Dual Benefits for Surviving Spouse who are at retirement age or above
Threshold for Earnings test went up from $1,800 to $3,000

6. Annual Benefit Payout Benefit Type 2016 Budget % Retiree $11,119,875
71%
Survivors (SP/DC)
$4,041,171
26%
Disability
$472,482 3%
Lump Sum
$77,613 1%
Total
$15,711,141
100%

7. Current Number of Active Beneficiaries
Benefit Type
Count
Value
Retirement
1,975
$939,379
Surviving Spouse
852
$289,006
Surviving Child(ren)
272
$20,815
Disability 80
$36,305
Dependent Disabled 27
$3,301
Total
3,206
$1,288,806

8. Historical Trend Information
Year End
Net Assets Available for Benefits
Accrued Liability (AAL)
Funded Ratio
Unfunded
AAL
09/30/2014
$98,040,000
$240,492,000
41%
$142,452,000
09/30/2013
$93,182,000
$201,486,000
46%
$108,304,000
09/30/2011
$77,367,000
$168,614,000
$91,247,000

9. Cash flows and Asset Balances from 2016 to 2025
Year End
Ben Pmts
Contribution
Net
2016
11,781,063.99
11,819,350.00
38,286.01
2017
12,370,117.19
12,203,479.00
(166,638.19)
2018
12,988,623.05
12,600,092.00
(388,531.05)
2019
13,638,054.21
13,009,595.00
(628,459.21)
2020
14,319,956.92
13,432,407.00
(887,549.92)
2021
15,035,954.76
13,868,960.00
(1,166,994.76)
2022
15,787,752.50
14,319,701.00
(1,468,051.50)
2023
16,577,140.12
14,785,091.00
(1,792,049.12)
2024
17,405,997.13
15,265,606.00
(2,140,391.13)
2025
18,276,296.99
15,761,738.00
(2,154,558.99)

10. Moving Forward Improve on collections in three areas:
Educate every person interested to start business
Actively pursue businesses with delinquent accounts
Lobby politicians to create ways to help sustain ROP SS into the future