Prior Service Administration Receives $1 Million

On November 25, 2004, the FSMSSA received information of another $1 million for payments appropriated by Congress for payments to replace the Prior Service Trust Fund as proposed by the House. The managers directed the Department of the Interior to work with the Prior Service Trust Fund Board of Trustees to reach an agreement no later than October 25, 2005 to replace the Prior Service Trust Fund. Such an agreement shall provide for:

• The pension systems of FSM, Palau, CNMI and Marshall Islands to assume responsibility for the enrollees of the Prior Service Benefits Trust Fund;
• The allocation of potential future US funding, if appropriated;
• A reasonable transition overhead rate;
• Appropriate changes in benefits if any;
• The termination of certification and enrollment of new beneficiaries by March 31, 2005.

The managers also directed that if no agreement can be reached, this $1 million in funding should be reprogrammed for general technical assistance uses.

Posted 12/17/2004.

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