The insolvency of the NMI Retirement Fund

Trustees of the Retirement Fund are responsible for policymaking issues of the organization. It makes decisions on the hiring of money managers—experts on investments—the annual budget of the fund, among others.

It seems fair game for trustees to shift the financial debacle of the Fund to the administration and Legislature. In fact, trustees conveniently ignore that it is a part of this messy equation but want us to look the other way rather than taking a critical look at its ineptitude. While it shifts the blame, the program sinks deeper into the red sea of insolvency. What has it done to help resolve, with finality, issues that should have been discussed in deliberative fashion over what’s politically incorrect?

As a member of the Fund, I know it is vital to unravel issues that have been sidestepped by the Fund as it promotes all the wrong information. For instance, in the hiring of money managers, have trustees imposed accountability to this group of experts on investment recommendations that end up in losses by the millions of dollars? Have trustees diligently looked into this vital aspect involving failed investments? It is obvious that trustees have simply allowed these managers to go scot-free as though the Fund still has millions more to spend wastefully, freely! It is tantamount to the stimulus package of unbridled spending, only to result in the Tea Party where taxpayers are saying, “Keep Your Change” or “Chains we don’t deserve!”

Understandably, it is difficult navigating investment opportunities under the volatility of the prevailing global financial crisis. But then, isn’t it prudent for trustees to liquidate investment portfolios in order to avert further losses in Fund money by the millions of dollars as has happened recently? What does it take to bring you into equilibristic reality check?

Why wasn’t this step undertaken in the interest of protecting retirees and members? Was it too difficult an undertaking, therefore trustees had to engage in the baseless and useless blame game to cover its incompetence? Why can’t trustees admit that they are equally a part of the problem in the Fund’s financial debacle? You seem to be running out of excuses in your bag of tricks, right?

Trustees wanted the administration to cough up what’s owed in employer’s contribution. But isn’t it true that forcing the issue simply means including taxes paid into the local coffers by the private sector and their employees? Why should they be penalized when they have nothing to do with the Fund nor are they slated to benefit by paying for someone else’s incompetence? Why would you kill Jose so that Juan can live? Please, you have bankrupted the system; let’s veer off private sector taxpayer lawsuits.

It would also be prudent for the Fund to demonstrate to retirees and members what has it done in the last four years to cut operations expenses of the Fund. Let’s see your annual budget, including salaries for personnel, payments for vendors and who are these vendors, among other things. We deserve to know!

Finally, if at the end of another imperfect day you can’t resolve issues I have raised hereinabove, perhaps it’s best you do it Japanese style: Resign! We deserve nothing less than reasoned and competent disposition of the issues at hand. Did someone boasts he’s an expert on solutions? Step up to the plate, sir. I challenge you to resolve this issue with finality!