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Administration eyes Fund reorganization
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Posted on Nov 28 2013
The Inos administration, through press secretary Angel A. Demapan, said it will reorganize the NMI Retirement Fund as soon as the agency completes its transition period.
As to how the executive branch will do this, he didn’t elaborate to Saipan Tribune.
“The Retirement Fund is in a period of transition with the establishment of the Settlement Fund. [But] one the transition is completed, NMIRF will be organized in line with its drastically reduced duties and responsibilities as a result of the settlement agreement approved by the court,” disclosed Demapan.
The Fund’s assets were ordered to be moved into the settlement fund under the control of federal court. This happened following the U.S. District Court’s approval in the Betty Johnson’s class action suit.
Appointed settlement trustee attorney Joyce Tang will be administering the agency’s assets.
Gov. Eloy S. Inos in an early interview with Saipan Tribune said that once checks are disbursed to members and retirees he believes that the Fund as an entity is not even needed. The issuance of remaining checks of members who did not withdraw their contributions and the periodic issuance of pension checks to retirees can be performed by other agencies and groups instead of the Fund.
From the governor’s point of view, he doesn’t think that the CNMI really needs to continue the Retirement Fund as an entity. If things are resolved, he earlier said that it’s only a matter of paying annuities and the Department of Finance or the banks can do that.
The Fund had disbursed checks to members last Oct. 15. Public Law 17-82 allows Fund members to withdraw the full amount of their contributions without separating from the government.
