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New initiative seeks to set aside $25M yearly for Fund
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Posted on Nov 26 2011
By Haidee V. Eugenio
Reporter
Reporter
Senate President Paul Manglona (Ind-Rota) pre-filed on Tuesday a new legislative initiative that would set aside $25 million each fiscal year to guarantee payment of the government’s employer contribution to the NMI Retirement Fund.
Senate Legislative Initiative 17-15 is the third initiative that Manglona has introduced or pre-filed this month, along with one bill, to help save the pension agency.
If the initiative passes the Senate and House, it will be presented to voters for ratification at the next general or special election.
SLI 17-15 seeks to amend Section (a) of Article III of the CNMI Constitution.
“In further preparing the proposed balanced budget, the governor shall first set aside not less than $25 million of the resources to pay the government employer contribution to the NMI Retirement Fund each fiscal year until paid in full,” the initiative says.
Manglona said the Fund payment shall be treated like bond payments and be given first priority each fiscal year.
“By mandating such a payment each year, the government will be forced to adjust its expenditures to meet its obligation to the Retirement Fund for the benefit of the members of the Fund who are retirees and/or beneficiaries and active government employees,” he said.
Two other initiatives-SLI 17-13 and SLI 17-14-were formally introduced on Nov. 16.
SLI 17-13 authorizes the Fund to receive proceeds of existing public land leases for hotels, golf courses, and other large public land leases, while SLI 17-14 authorizes public land interest proceeds, which has been going to the general fund in the past, to be diverted to the Fund until such time that the government debt to the Fund is paid in full.
Manglona also introduced Senate Bill 17-96, which transfers the title of many vacant government properties with buildings on Capital Hill, Navy Hill, Garapan, Rota, and Tinian to the Fund to generate money. It intends to transfer such properties to the Retirement Fund to offset some of the government’s employer contribution debt to the Retirement Fund.
