‘Moving back to Social Security is only option’

Lt. Gov. Eloy S. Inos said Saturday that moving back to the U.S. Social Security system is the only option at this time to place a safety net for NMI Retirement Fund retirees, active government employees and others involved, and the Fitial administration is now negotiating with the U.S. Social Security Administration to allow a 10-year buy back instead of five years.

“We cannot afford the existing retirement. It is not sustainable. Doing nothing is not an option,” Inos said in an interview Saturday morning on the Sabalu Market grounds in Susupe where he signed a proclamation declaring Farmers Week.

The administration would hear back from the U.S. Social Security Administration whether it will agree to a 10-year buy back, among other things, after another teleconference on Tuesday (Monday in Washington, D.C.).

Gov. Benigno R. Fitial designated Inos to be the lead person in managing the Fund crisis on behalf of the Fitial administration.

Inos made it clear to lawmakers on Friday that the plan to go back to U.S. Social Security will only work if the Fund’s Chapter 11 bankruptcy filing is withdrawn or dismissed.

In April, the NMI Retirement Fund became the first public pension agency on U.S. soil to seek bankruptcy protection.

Diego Benavente, a director of the Commonwealth Retirees Association, said yesterday that CRA has yet to discuss this latest development. A former representative and lieutenant governor, Benavente said that CRA looks forward to hearing directly from the administration about its plans to help retirees and government employees.

Inos said he plans to meet with retirees, active Fund members and other government employees this week.

While the administration waits to hear back from Social Security, it also recommends that the Legislature withdraw House Bill 17-226, saying the bill would hasten the Fund’s demise and remove safety net for members. HB 17-226 allows active members to withdraw up to 50 percent of their contributions.

The administration also wants the Legislature to introduce and adopt a resolution supporting a transition to Social Security and pass measures that would help prolong the Fund’s lifespan such as removing add-ons to retirement benefits such as the cost-of-living allowance.

Rep. Ralph Demapan (Cov-Saipan) will be introducing a bill removing the Fund board of trustees and placing the Fund under the Department of Finance, among other things.

Rep. Ray Yumul (R-Saipan) and Rep. Ray Palacios (R-Saipan) separately said it’s a positive development that the Fitial administration has finally shared specifics of its plans to help retirees and active members.