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Cabrera: Retirees’ group to develop official position on Fund consultant
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Posted on Feb 04 2012
By Moneth Deposa
Reporter
Reporter
The Commonwealth Retirees’ Association is developing a formal and official position on the recent decision of the Retirement Fund board to hire a consultant.
CRA board chair Lorenzo Leon Guerrero-Cabrera told Saipan Tribune, however, that this will not be finalized until the group is fully aware of all the details of the issue, including the contract and deliverables expected of the new consultant.
Fund board chair Sixto K. Igisomar confirmed early this week that former House speaker Heinz Hofschneider will soon be hired as the board’s consultant to help it identify solutions to the present dilemma of the pension agency.
This issue was among the topics that were expected to be raised in yesterday’s meeting.
Cabrera said that the association will not come up with any official stand until all questions are satisfied.
Hofschneider’s contract has yet to be signed pending the identification of expected deliverables.
For now, Cabrera could not say if the group will support or oppose the Fund decision to hire Hofschneider for $70,000 per annum.
“We are going to develop a formal position and anybody [among the members] who has information about it, I’d like to see that in the table for discussion. But as long as I don’t have the [information] about the expected derivables, no official position can be finalized. You cannot say shoot first without knowing what the target is.” he said.
Cabrera said the association still supports the option of reducing members’ benefits and pension as a way to prolong the life of the pension plan.
He blamed the “very generous” benefits provided-through legislation-to members, contributing to the Fund’s precarious situation.
Late last year, CRA adopted resolutions urging both the governor and the Legislature to cease passing and approving legislation that harm the Fund, which now only has over $250 million in its investment portfolio. It also urged the central government to continue remitting its employer contribution for the pension agency’s continued operation.
