Media Release
U.S. Disburses Reform Assistance For Chuuk
June 12, 2008
On June 10, 2008, the U.S. Government disbursed $2,037,210 in unallocated FY 2008 Compact Sector Grant funds to the FSM National Government to support the Reduction-In-Force (RIF) component of the Chuuk State financial recovery plan. A Memorandum of Understanding (MOU) signed by the FSM and Chuuk State leadership on July 19, 2007 documents the terms of this plan, which provides a roadmap to restoration of Chuuk State’s financial viability.
To ensure this plan’s success, the Chuuk State government finalized identification and elimination of 381 public service positions formerly budgeted under its General Fund. Chuuk State employees whose positions were permanently abolished will receive a lump sum severance payment, equivalent to one year of their former salary plus leave benefit, as financial assistance while they seek other employment. This one-time RIF Assistance Program is designed to produce fiscal savings of approximately $2.5 million dollars and to facilitate “right-sizing” in public sector operations.