20 May 2010

Viability of Marshalls retirement fund questioned

7:06 pm on 20 May 2010

The President of the Chamber of Commerce in Marshall Islands say future generations of retirees could be hurt by the financial problems being faced by the country's retirement fund.

For the first time in 10 years, the Social Security Administration has been forced to dip into 1.2 million US dollars worth of its investment money to pay pensions.

It has appealed to the government for urgent action to prevent the fund from drying up in a decade.

The President of the Chamber of Commerce in Marshall Islands, Stephen Philip, says the problem is serious.

"As a quick remedy at this time is to maintain agressive on the collections. And as well, do a survey with the government and the local government to see numbers of companies and small businesses which haven't yet been filing taxes. So they should go through into that very agressively in this time while businesses are still flourishing."

Stephen Philip from the Marshall Islands Chamber of Commerce.