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TO ENSURE GOVT MEETS ITS OBLIGATIONS TO PAY THE RETIREES
Trustee directed to begin working group talks for long-term solutions
U.S. District Court for the NMI designated Judge Frances Tydingco-Gatewood yesterday ordered Settlement Fund Trustee Joyce C. H. Tang to begin a working group conversation with Gov. Ralph DLG Torres and members of the Legislature to explore long-term solutions that will ensure that the CNMI government meets its obligations to pay pension benefits to retirees under the settlement agreement.
In a written order following Friday’s hearing, Tydingco-Gatewood reemphasized that it is critical for the CNMI government to work together and to cooperate with Tang to identify stable source of funds to ensure the continued payment of pension benefits to the retirees.
The judge on Friday ordered acting governor Victor B. Hocog to form a working group with the Legislature and Settlement Fund for long-term planning.
Tydingco-Gatewood said a long-term solution for the Settlement Fund has to be addressed now.
She also ordered Tang that day, Friday, and Settlement Fund administrator Lillian Pangelinan to process the 25 percent pension payments to retirees that were due last Feb. 12.
In her written order yesterday, Tydingco-Gatewood said Finance Secretary Larrisa Larson and Pangelinan to continue to participate in weekly conference calls to discuss the schedule of the government’s interim payments.
Tydingco-Gatewood shared Tang’s concern that the government needs to make more significant and regular payments toward the minimum annual payments required under the settlement agreement.
The judge said she is aware that the Settlement Fund has had to regularly draw down on its investments to cover the 75 percent payments to the retirees.
As trustee’s expert has reported, Tydingco-Gatewood said, the government’s actions or inactions greatly impact the retirees in that it results in a significant loss of investment income and will hasten the depletion date of the Settlement Fund’s investment.
