Threat of Fund receivership inevitable due to legislative inaction?

Dear current and future retirees: Few of us seem aware of Judge Govendo’s recent Superior Court order written on March 19, 2012.

Citing the imminent collapse of the Fund and the need to save it, Govendo gave the Legislature and the board of trustees until June 15 to come up with a satisfactory agreed-upon plan to save it.

Should the proposals be unsatisfactory, Govendo writes that he will hear petitions for receivership to be filed on June 29.

Among the many proposals already reviewed and brought to attention at the March 13 and 14 hearing:

* Capping at $50,000 the maximum threshold for pension benefits.
* Various tax increases, bond proposals
* Allowing prime land and golf courses to be leased up to 99 years with lease proceeds going to the Fund (To see other proposals go the Web to “CNMI Retiree Blog”)

Govendo writes that many of proposals are sound; however, given the demise of the Fund imminent, steps must be taken immediately.

Why receivership if many proposals are sound? The key phrase here is “agreed-upon.” Though many fixes are doable the challenge appears to be getting everyone to agree to it.

And what is receivership anyway? Wikipedia’s definition: In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person “placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights.”[1] The receivership remedy is an equitable remedy that emerged in the English Chancery courts, where receivers were appointed to protect real property. Receiverships are also a remedy of last resort in litigation involving the conduct of executive agencies that fail to comply with constitutional or statutory obligations to populations that rely on those agencies for their basic human rights. The receiver may run the company in order to maximize the value of the company’s assets, sell the company as a whole, or sell part of the company and close unprofitable divisions.

If there was ever a time to stand up and make your voice count, now is the time. There are solutions that will make your retirement last without having to resort to receivership.

The Legislature is the only body working in tandem with the board of trustees who can create real laws and amendments to save your retirement.

Just go to their website, http://www.cnmileg.gov.mp/, click on HOUSE or SENATE then MEMBERS. Just click their names to send an email.