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PSS tops Fund debtor list with $10.3M owed
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Posted on May 20 2009
Among autonomous agencies in the CNMI government, the Public School System tops the debtor list of the Retirement Fund, and is projected to owe as much as $10.3 million by end of the fiscal year in September.
This was disclosed by the Fund’s comptroller, David Demapan, during Tuesday’s board meeting.
Second on the list of outstanding Fund debtors is the Northern Marianas College, with $4.7 million owed the Fund this fiscal year.
Both agencies are classified key departments by the government and are paying the Fund at 11 percent rate.
Another cash-strapped agency, the Commonwealth Utilities Corp., owes $1.7 million, while the Commonwealth Ports Authority so far owes $479,000 in employer contributions. The Marianas Visitors Authority? $367,000.
The Department of Public Lands is another department with arrears, owing $101,000 in employer contributions to the Fund.
Demapan also reported that the Tinian Municipal Treasurer is behind on its payments, with a total standing debt of $1.5 million at present.
The comptroller said all payments being made are applied first to interest before the principal amount. He said the balance of the receivables for autonomous agencies is $19.2 million—principal plus interest in FY 2008, while $610,000 just for interest in FY 2009.
The Fund board of trustees has passed a resolution preventing members from retiring if they are delinquent in their contributions.
In the case of some agencies, contribution payments are made in full for individual employees who wish to retire from service.
