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Fund optimistic on release of pensions, benefits on June 30
The NMI Retirement Fund yesterday expressed optimism that its members’ pensions and benefits would be released this month after learning that no one opposed its motion in bankruptcy court.
The Fund notified its beneficiaries-retirees, survivors, and disability annuitants-yesterday that it has applied with the bankruptcy court to continue paying benefits at 100 percent, including payment of 50 percent of the health insurance premiums of enrolled beneficiaries.
This application, it said, was necessary because bankruptcy judge Robert Faris issued on June 13 a memorandum of decisions on motions to dismiss the Fund bankruptcy case in which the judge delayed dismissing the case. The memorandum specifically stated that “the order dismissing the case will be entered after orders on the applications [for professional fees] and motions [opposing the payments] are entered and all approved compensation, reimbursements, and administrative expenses are paid.”
The Fund explained that when the bankruptcy petition was filed, enough funds for payment of benefits through June 15 was set aside in a bankruptcy remote entity. Those funds have been substantially paid out to beneficiaries.
The Fund’s application to continue paying benefits will be heard on Tuesday, June 26, 2012, at 9:30am at the U.S. District Court for the Northern Mariana Islands.
“Neither the creditors’ committee nor the bankruptcy trustee have opposed the application, and the Fund sees no other reason why Judge Faris would not grant the application. If the application is granted promptly, the Fund should be able to meet the June 30th paydate for benefits,” the Fund stated in its notice.
The Fund also clarified that the professionals that are eligible to submit bills to the bankruptcy court for review and approval or modification and eventual payment from the Fund are the Fund’s bankruptcy counsel Brown Rudnick, LLP and its local counsel, the Law Office of Braddock J. Huesman, LLC, and the Creditors’ Committee Counsel (Gelber, Gelber & Ingersoll) and its local counsel Thompson Law Office, LLC.
Additionally, the Fund said, the bankruptcy trustee is entitled to statutory fees for services.
