Fund: NMI elected officials choose to ignore our please

The NMI Retirement Fund and its board told Saipan Tribune that they are disheartened, alarmed, angry, and absolutely terrified that after tireless efforts from them, elected government officials continue to ignore the agency’s advice and pleas for help to save the pension program.

This was in reaction to the signing into law of Public Law 17-51 last week, which is now being blamed in the termination of money managers’ contract and the possibility of losing the plan’s investment consultant, Wilshire Associates.

“Obviously the Legislature and other elected officials have not listened to the Fund’s concerns before PL 17-51 became law. It has been extremely frustrating and costly for us to present the deteriorating financial situation of the Fund to them in many attempts to convince them to increase contribution amounts. They as a group simply don’t hear the Fund’s concerns,” the Fund’s management told Saipan Tribune in a statement yesterday.

The Fund said Gov. Benigno R. Fitial gave assurances that he will not approve the bill until all the Fund’s concerns are addressed. In a separate meeting with the Lt. Gov. Eloy S. Inos, Fund officials also disclosed yesterday that he also gave assurances that he is aware of the Fund’s concerns and that he is interested in hearing the concerns raised by the Fund’s investment consultant, all the money managers, and the actuary.

“It was with great surprise on Tuesday, Sept. 6, 2011 when the Fund received word that the bill was signed into law. The Fund then began preparations for the onslaught of turmoil it anticipated on happening if this bill ever became law. To date, we have received notifications of cancelled contracts,” said the Fund, alluding to Stralem & Company and BlackRock Inc.

Saipan Tribune learned that the Fund was first made aware of the derivative bill when former house speaker, Rep. Froilan Tenorio (Cov-Saipan), requested Fund administrator Richard Villagomez to meet with him and the House leadership 30 minutes before their session in October 2010. In fact, the Fund said, Tenorio and company even faxed a copy of the derivative bill to the agency for its review.

During the meeting, Tenorio advised the Fund that the Senate had already passed the bill on first and final reading and the Senate further advised the House leadership that they consulted the Fund and that the Fund and board is in full support of the bill.

However, the Fund said Richard Villagomez and legal counsel Viola Alepuyo were astounded and quickly informed the House leadership that the Fund only had 10 minutes to review the bill, but even with the cursory review they had grave concerns. The leadership asked why the Fund didn’t inform the Senate of its concerns and Fund officials told them they didn’t know of the bill’s existence and were not given an opportunity to review, much less comment on the bill.

The House held off passing the bill and sent it to the House Judiciary and Governmental Operations Committee for review.

The Fund then submitted several position papers regarding the bill and even submitted a substitute bill with suggestions how the bill could be amended to provide protection for the Fund. Its version of the bill was ignored.

The bill then passed the House over the Fund’s objection and was sent to the Senate. It was on Aug. 3, 2011, about 1pm, when the Fund got a call from the Senate advising about a Senate session at 1:30pm and that one of the items to be acted on was the passage of the derivative bill. It was discovered that the bill was not on the agenda but was passed by the senators.