Angaur State Legislature has offered a funding solution to the two largest public social programs with huge unfunded liabilities, the Civil Service Pension Plan and the Social Security Administration.
Both organizations are receiving fewer contributions and paying out more benefits, resulting in the organizations pulling out investments from the market to fund contributions. Civil Service Pension Plan pays out over $10 million per year but collects around $7 million, forcing it to seek nearly $3 million elsewhere.
Angaur State Legislature offers a solution to generate revenue through the “controlled” gaming industry.
Jackon Henry, President of Angaur State Legislature, in a letter to both houses of the Olbiil Era Kelulau said that the “plight of the Pension Fund and SSA cannot be permanently solved under the status quo.” Further, he said, increasing the retirement age and increasing contributions are not the best solutions, rather generating new revenue using “controlled gaming” is said to be a better option.
Angaur State, by state law and by the state constitution, already has a gaming law in place. Mr. Jackson requests the national government to approve gaming in Angaur State only as it is the only one with existing law.
Further, Mr. Henry argues that gambling is not a sin according to “New Catholic Encyclopedia,” citing that many churches conduct the games of BINGO and Lottery.
According to their cost-benefit analysis, the benefits of gaming “outweigh its social costs, particularly the consumption of Alcohol and Tobacco products.
“The ultimate solution is to generate new revenues to the Republic, and so by allowing an Angaur State Only gaming law provides a real solution. The leadership of Angaur offers our state to be the site of Palau’s controlled gaming industry.”