Yokwe! Welcome to MISSA online.
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MISSA investments rally in the past three months
Stocks have been rallying hard since hitting multi-year lows in early March 2009 and this may be an indication that the financial sector and world market are close to stabilizing. But for the Administration, the road to recovery is still far from over.
Since the onset of FY 2009, the market value of MISSA’s investments outside the country has dropped by $5.01 million, bringing down MISSA’s total investments to $54.81 million as of May 31, 2009. This includes BOMI/MISC stocks and BOMI TCDs of $12.83 million. MISSA’s total investments peaked in October 2007 when its market value reached $66.6 million.
The first eight months of FY 2009 had been a rollercoaster ride for MISSA investments. The biggest monthly loss was felt in October last year as its market value declined by $6.48 million and dropped further by $1.97 million in the following month. In December, it rallied back with an increase of $1.07 million but the gain was short-lived. The January-February results continued to be dismal as it shrunk further by $5.49 million. By end of March, it started to turn around with a gain of $1.62 million and rallied further in April and May with additional gains of $3.53 million and $2.73 million, respectively. Read more...
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Recent actuarial report not promising but better than projected
According to the actuary, MISSA’s AAL as of October 1, 2008 totaled $225.8 million while total assets amounted to only $63.2 million. The imbalance resulted to an unfunded AAL of $162.6 million or 72%. Therefore, the funded AAL is only 28%.
The AAL represents the liability of the Administration for benefits already earned, including those in pay status, as well as benefits earned as of the valuation date for workers who are earning future benefits. One can think of this liability as the amount needed today to pay for all benefits earned as of today that are either already being paid or will be paid in the future. Read more...
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MISSA opposes Bill# 50
On March 9, 2009, another proposed legislation (Bill# 50) was introduced in the Nitijela to repeal Sections 103(q), 136(1)(a), 136(2)(a)(c), 13 6(3)(4) and 144 of the Social Security Act of 1990 (The Act).
The bill seeks to remove the early retirement benefits in order to enable a worker or self-employed worker to be fully insured to the amount contributed at the normal retirement age of 60. It will also eliminate the "earnings test" which will get rid of reduction of quarterly benefits of a retiree aged 55 to 62 years who is still in covered employment
The act provides oprion for a worker and self-employed worker to get an early retirement at the age of 55 provided that such worker or self-employed worker is "service insured' (has earned at least 80 quarters of coverage). Read more...
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Legal Counsel boosts MISSA collections
With the ever increasing benefit payments outpacing collections in recent years, MISSA has to find other ways to maintain a positive cash flow. Otherwise, it will resort to dipping into its Trust Fund to ensure uninterrupted payment of benefits averaging $1.1 million every month and another $1.0 million in administrative expenses every year.
With the help of its legal counsel (David Strauss), MISSA was able to step up its collection efforts that resulted in partial and full settlement of old debts, either amicably or through court orders. In FY 2008, MISSA was able to collect about $1.2 million and another $1.5 is expected to be collected this fiscal year out of these old-outstanding receivables. Read more...
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2009 outlook on sustainability
Looking back into FY 2008, the Administration saw the worst months in recent financial history. The world market dipped into a steep plunge that created a global panic. Like any other investor, MISSA was not spared as its $53.95 million offshore investments at the beginning of the fiscal year dropped to $46.33 million as of September 30, 2008.
Although the current global system is highly vulnerable and uncertain at the moment, MISSA’s investment portfolio is designed to ride out market volatility and market cycles. It is prudent, widely diversified and divided into 12 separate asset classes to reduce risk while achieving global market returns. MISSA believes that it has more than adequate time for its investment portfolio to recover. Aside from routine rebalancing, the Administration anticipates no changes in its investment program and strategies in the new fiscal year. Read more...
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MISSA welcomes new Board Members
During its meeting on January 9, 2009, the Cabinet approved the appointment of three new members of the MISSA Board of Directors. Their appointments were subsequently confirmed and signed by President Litokwa Tomeing.
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Fredly Mawilong |
Jemi Nashion |
Kunar Abner |
Effective January 22, 2009, Fredly Mawilong and Jemi Nashion will take the place of E. Tommy Milne and Jefferson Barton, whose three-year terms have ended on January 21, 2009.
Fredly Mawilong is a long-time resident of Ebeye and has worked in Kwajalein since early 80s. He applied for normal retirement in 2004 but continued working until 2007.
As Ebeye’s representative to the MISSA Board, Mr. Mawilong will play an active role in addressing all social security concerns in Ebeye and Kwajalein. Read more...
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FY 2008 audit: MISSA earns another top rating
While certain agencies of the government are still struggling to have their financial records ready for audit covering as much as five years back, the Administration has already received its audited financial statements and independent auditors’ report for fiscal year ended September 30, 2008.
The early submission of audit requirements by Sheryl Profeta (left photo), MISSA’s Finance Manager, enabled the auditors of Deloitte & Touche to start their audit field work as early as November 18, 2008. As in the past several years, the audit field work was completed within two weeks and subsequently, all pending queries and issues were cleared and resolved. Read more...
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MISSA Administrator meets with Kwajalein-Ebeye employers
The Administration has now put more focus on a “reaching out” effort to increase its collections and disseminate social security information to the public, more particularly in Ebeye and Kwajalein, where about $3 million a year or 20% of the total contributions for the Marshall Islands Retirement and Health Funds are collected by MISSA.
In December 2009, the MISSA Administrator, together with Tax Managers from the Head Office and the Branch Manager of Ebeye, met with representatives of KalGov headed by Mayor Johnny Lemari. Read more...
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Frank lectures on the ABCs of fiduciary law and practice standards
In the midst of the current global financial crisis and considerable losses incurred by numerous trust funds in the Marshall Islands, the College of the Marshall Islands Public Policy Institute invited Frank Armstrong of Investor Solutions, Inc., MISSA’s Investment Advisor, to facilitate a lecture about the role, practice standards and ethical values of fiduciaries.
What is a fiduciary? A fiduciary is an individual who is required to act for the benefit of another, and occupies a position of trust to that person. Read more...
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PSTF benefits assured until end of 2009
The 237 Marshallese and hundreds of Micronesians currently receiving benefits from the Prior Service Trust Fund (PSTF) are assured of continuous benefits until end of 2009 as $500,000 additional funding was approved by the Office of the Insular Affairs, US Department of Interior.
This piece of good news was brought to the attention of PSTF’s Board of Directors (right photo) comprised of the Administrators and Board Chairmen of the former members of the Trust Territory) during their meeting in Guam in February 2009.
The additional funding will be divided on a pro-rata basis among the four former members of the Trust Territory - the Commonwealth of the Northern Mariana Islands, Republic of Palau, Federated States of Micronesia and the Republic of the Marshall Islands. Read more...
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IAC increases premium rates
MISSA and the Association of Retired Persons in the Marshall Islands are covered entities under the Group Insurance Policy with the Individual Assurance Company (IAC). The policy was issued in April 2005 and represented by the Office of the RMI Public Service Commission (as the Policyholder) and also included RMI Government employees and other government agencies like MIMRA, MWSC, NCT, Ports Authority and KalGov..
Initially, under the retiree group insurance policy, the designated beneficiary(ies) who is(are) usually the immediate family of an enrolled member who had died, is entitled to receive $5,000. The monthly premium was $30.33. Read more...
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Local investments save MISSA from further losses
The latest report covering the first quarter of FY 2009 from Investor Solutions, Inc., MISSA’s Investment Advisor, remains dismal despite the $1.59 million investment gain MISSA had in December 2008.
For the month of December, every single equity traditional asset class was solidly positive, some with double digit returns. But such gain was overshadowed by significant losses in October and November that decreased further the fair market value of the Administration’s offshore investments by $6.84 million. Read more...