Fund trustees rule out settlement with CNMI govt

Government retirees and their supporters trooped to the Retirement Fund office yesterday to get assurance from the board of trustees that they will not give up the ongoing lawsuit against the CNMI government. The retirees fear the government may pressure the board members to withdraw the lawsuit or vote for an out-of-court settlement in the $215 million debt issue.

Fund board chair Juan T. Guerrero assured that they fully intend to go ahead with the lawsuit, discounting the possibility of an out-of-court settlement at this stage.

“Everybody says we must maintain the course of the lawsuit…and we’re intending to do that,” he told Saipan Tribune.

He emphasized that there’s no way the board will consider withdrawing its case against the government at present when it is expecting results in the very near future.

“We’re almost there. I am not saying that we would not negotiate with them because if there’s a need to talk about the payment plan [as mandated by the court], we will do that. We’re very straightforward, asking to get paid and work out a payment plan. It is not our intention to bankrupt the government,” he added.

Stay the course

In the presence of two newly confirmed trustees, the retirees vowed to support the board’s actions, provided it stays on course with the lawsuit.

They believe that the fate of the island’s present and future retirees now lies in the hands of individual board trustees and their decision making process.

“Please don’t give up this important court matter because this is something we’re truly holding on,” retiree Joe Palacios told the board, adding that setting the right direction for the Fund would have a big impact on future retirees on the islands.

Former Board of Regent Agnes McPhetres, also a retiree, said they were very impressed with how the Fund has proven its case throughout the court proceedings.

“What we’re preventing from happening is a disaster in the future. We’re very happy, seeing how the Retirement Fund lawyers work for the people. We’re just hoping this process will continue because we’re counting on you trustees,” she said.

For retiree Ruth Tighe, the idea of a settlement and negotiation should not be an “option” for the Fund board. She echoed her peers’ pleas to let the court decide the matter.

For retiree Donna Cruz, failure of the board to seek payment from the central government would also mean a loss of several opportunities and privileges.

“If we fail, I don’t think an insurance company will take any one of us,” said Gloria Hunter.

The Fitial administration earlier expressed its plan to seek the intervention of the federal court, which the chairman of the board claims is unnecessary at this point.

“I don’t know why we need to mediate now? The court is almost finish with the case and let’s finish it here,” he said, adding that the Fund has been trying to work with the government to prevent this from happening. However, these efforts have been neglected in the past.

Guerrero is optimistic about a positive result in the court battle.

The $215 million debt being claimed by the Fund is higher than the CNMI government budget, which is only $143 million.

‘Root of the case’

The lawyer for the Retirement Fund, Viola Alepuyo, explained to retirees yesterday that the ongoing lawsuit with the government arose from a memorandum of agreement the government signed with the Fund in 2001.

Under the MOA, the central government agreed to make $500,000 bi-weekly payment to the Fund for its arrears beginning July 9, 2001.

In exchange, the Fund will refrain from taking any formal legal action to recover the sums owed, amounting to $57 million at that time.

Though she acknowledged that some payments were made, the government was still behind for many years.