Around $72 million to be spent by Retirement Fund on benefits
The Retirement Fund will spend around $72 million in the fiscal year 2010 to offer various benefits and pension to the government employees. However, the matter of concern is that only $20 million will be received in direct contributions while the rest of the money will have to be taken from the investment portfolio which is already shrinking.
Due to the global economic down slum, the investment portfolio of the Retirement Fund was valued at around $276 million. To cope up with the problem, the trustees of the fund are thinking of making a withdrawal of around $55 million more in the year 2010. Officials say that it is important that the employer and employee contributions are put into the retirement fund to avoid the risk of non payment in the future. Presently around $71 million are allocated for pension and other retirement benefits of government employees and the remaining funds are for operations expenses. The total amount of pension of retirees for the year 2010 is expected to cost around $54.651 million.
The Retirement Fund also needs to pay $1.819 million for disability benefits, around $5.79 million for survivor benefits, around 150,762 special annuities for retired governors and lt. governors. In addition there are also other expenses.