In an interview yesterday, Aguon said since the Retirement Fund’s investments are in the stock market, there is no way to escape the financial crisis the U.S. is experiencing now.
During a recent presentation attended by about 30 people, the Retirement Fund discussed the agency’s financial condition.
From fiscal years 2007 to 2008, the Retirement Fund said its assets dropped from $510 million to $396 million.
Aguon said the Retirement Fund cannot make a projection because “nobody has a crystal ball here.”
But he said a lot of indicators are pointing downward as the U.S. economy continues to slow down.
The expenditures of the Retirement Fund for fiscal year 2008 totaled $76,894,577, of which over $51 million went to pensions; $5.2 million to survivors; $1.8 million to disability checks; and $1.9 million to health insurance as mandated by Public Law 8-31.
The total revenue sources amounted to $34.3 million, the largest portion of which was the $30.7 million from employer contributions while $2.2 million came from local investments.
The government’s employer contribution deficiency, however, totaled $165.2 million.
The $51 million government contribution in 2006 went down to only $35 million last year.
The Fund’s monthly payments have also steadily increased, putting pressure on its reduced assets.
