President Surangel Whipps Jr. announced on Wednesday, September 4, 2024, that the United States government will provide a $20 million grant to the Palau government to support reforms. The funds will be used to support the Civil Service Pension Plan, Palau’s government retirement program.
Whipps revealed that he discussed various areas of cooperation with U.S. Deputy Secretary of State Kurt Campbell during a side event at the Pacific Islands Forum in Tonga on August 28. He was informed that the U.S. Department of State would provide the grant to “invest in the people of Palau and support their ambitious program of reform.”
Whipps said he informed Palau’s leadership on Tuesday about the funding and his intention to invest it in the Pension Plan. This contribution is expected to increase the pension plan’s trust fund from $27 million to nearly $50 million. The Civil Service Pension Plan frequently requests financial assistance due to benefit payments exceeding investment returns. “It provides security. We can’t just do nothing. This is part of our effort to take action,” Whipps said of his decision to allocate the funds to the pension program.
Additionally, Whipps reported that he requested the Olbiil Era Kelulau to redirect the $3 million initially allocated for the Pension Plan to construct the Palau Medical House in Honolulu. He said the facility would provide another option for medical services and save the Health Care Fund money, as medical services offered in Hawaii would be free.
The $20 million from the U.S. Department of State is separate from the Compact funds.