Bill eyed to amend SS law to allow buyback for NMI

Delegate Gregorio Kilili Sablan (Ind-MP) and Lt. Gov. Eloy S. Inos are now looking into federal legislation to amend the Social Security law in order to allow a buyback for the CNMI, whose Retirement Fund has the dubious distinction of being the first public pension agency on U.S. soil to file for Chapter 11 bankruptcy.

Sablan, who met with Inos on Monday, said the CNMI is not part of the definition of “state” that is allowed buyback.

“Right now states can do buyback but we can’t, so we have to redefine ‘state’ to include the Northern Marianas. It’s a very simple amendment although it has huge implications,” Sablan told reporters yesterday.

Sablan said the decision of whether it’s going to be a five-year or 10-year buyback will be left to negotiations between the CNMI government and the U.S. Social Security Administration.

He said he could include his bill as a rider in a major bill so it could move faster.

Sablan and Inos will meet again next week to further discuss the matter.

Assistant attorney general Jim Stump had a teleconference yesterday with Social Security Administration officials.

Press secretary Angel Demapan said there’s not much new development following the teleconference but both the CNMI and SSA are currently reviewing governing statutes relative to opting into the Social Security program.

“This includes the idea of ‘buy back’ as well as determining whether and act of Congress would be needed at any point during the process. A follow-up teleconference will be scheduled possibly next week,” Demapan told Saipan Tribune.

Inos told reporters on 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 requesting 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 had said.

Sablan said he initiated talks with SSA on the matter since May 2009. “But obviously, people get busy, things falls through the crack. So now it’s a problem and I’m still here as it was in May 2009. Where I can help, I will help,” he said.

The Fitial administration said it has also been communicating with SSA for years.