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Demapan introduces bill to protect retirees’ pensions
Rep. Angel A. Demapan (R-Saipan) has introduced legislation aimed at protecting retirees’ pensions pursuant to the Settlement Agreement approved by the U.S. District Court for the Northern Mariana Islands. House Bill 19-178 seeks to establish the Settlement Fund Revolving Fund Account to ensure and protect future payments to the CNMI Retirees by reserving a specified amount from Business Gross Revenue Tax collections.
“Funds deposited into this special account shall be exclusively used to pay the minimum annual payment pursuant to the Final Amended Stipulation and Settlement Agreement in the NMI District Court Case 1:09-cv-00023,” said Demapan.
Demapan pointed out that the Settlement Agreement in the NMI District Court Case 1:09-cv-00023 details that after fiscal year 2015, the CNMI has agreed to make minimum annual payments to the Settlement Fund sufficient to enable the Settlement Fund to pay 75 percent of Class Members’ Full Benefits.
“If the CNMI fails to make its annual payments, the Court may enforce a Consent Judgment for the full amount of money the CNMI owes the Class Members,” added Demapan. “This legislation will provide the safeguard to ensure that funds are secured and paid to the Settlement Fund before general appropriations are enacted.”
Demapan also noted that the Legislature, this past February, passed legislation to protect the payment of the 25 percent portion of retirees’ pensions, but it did not address retirees’ concerns about ensuring that funds are committed annually for the 75 percent portion of their pensions.
“If enacted, House Bill 19-178 will alleviate the concerns of our retirees and the Settlement Fund as it will provide for the earmark and essentially guarantee that the government will meet its annual payment obligations under the Settlement Agreement,” said Demapan. (PR)
