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$1.5M Fund assets used for pension
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Posted on Dec 14 2006
The NMI Retirement Fund has taken out another $1.5 million from its assets to pay off pension and refunds, bringing the total withdrawals to $16.8 million since June this year.
Fund administrator Mark A. Aguon said the Fund board authorized Wednesday to use $1.45 million to settle pension obligations and refund claims this week.
The pension alone amounts to $1.2 million.
The Fund pays out retirees’ pension every 15th and 30th of the month.
As of early November, the Fund cited a total disbursement of $14.6 million.
On Nov. 30, the Fund’s withdrawals totaled $789,000.
Aguon said the amount of withdrawals vary depending on the money being remitted by other government agencies and payments made by the employees.
All autonomous government agencies continue to remit their employer’s contribution to the Fund at 36 percent.
The central government stopped paying its employer contribution since April, citing inadequate resources.
As a result, the Fund board authorized last June to tap $14.4 million of its investment money to pay off pension and refunds for the remainder of fiscal year 2006.
This came after the central government enacted a law suspending its employer contribution to the Fund for 18 months ending in September 2007.
As of April this year, the central government’s outstanding debt with the Fund in employer contribution totaled $85 million.
For fiscal year 2007, the Retirement Fund board approved to set aside over $35 to $50 million for the retirees.
For fiscal year 2005 alone, the pension payment reached $60 million, the Fund said.
