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Nena Tells State Governors ADB Is Happy with Progress on FSM Reform Proposal

PALIKIR, Pohnpei (FSM Information Service): February 6, 1997 - FSM Acting President Jacob Nena, in a January 3, 1997 letter to all State Governors, said that the Asian Development Bank (ADB) has been happy with the reform proposal that the FSM and state governments have undertaken to date, and the reactions to the early retirement so far have been positive.

The ADB Board is scheduled to review the early retirement application in mid-February, Nena stated, and that he is hopeful that the FSM and state governments would enact necessary implementing legislation in due time.

Nena concluded by saying he has learned that Yap State has enacted implementing legislation and that the states of Chuuk, Pohnpei and Kosrae and the FSM Congress are in the process of finalizing their implementing legislation.

There is yet a clearly defined FSM policy on whether or not the early retirement scheme, if and when implemented, would affect employee's eligibility for social security, says an official of the Office of Administrative Services.

In so far as the Health Insurance is concerned, an employee who voluntarily retired under the scheme and wishes to continue to be insured, he or she must notify the Health Insurance Office within 15 days of his severance date and must be required to pay 100 percent of the insurance premium. Currently, employees of the government pay 48 percent of the premium while the government contributes 52 percent, says an official responsible for FSM Health Insurance.