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Fund could run out in ten years

WELLINGTON, New Zealand (Radio New Zealand International, May 15, 2010) – The Marshall Islands retirement programme has appealed for urgent government action to overhaul the system to prevent the fund being wiped out in 10 years.

This year, for the first time in 10 years, the Marshall Islands Social Security Administration is being forced to cash in US$1.2 million of its investment money in order to meet benefit payments.

One Social Security official called this the start of a death spiral that could lead to the retirees’ fund being exhausted.

Cabinet was briefed on the problem by the Social Security board and management officials this week.

A proposal is being prepared to set up a task force to identify what can be done to preserve investments and benefit payments for future retirees.

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