Fund approves hiring of a board consultant for $70K

The cash-strapped NMI Retirement Fund will soon have a new board consultant that will be hired to the tune of $70,000 per annum.

The decision, reached during Friday’s board meeting, was described by board chair Sixto K. Igisomar as “a pro-active approach” in responding to the numerous immediate needs of the pension agency.

Igisomar could not immediately confirm Friday if the position is newly created but assured that the agency has the funds to pay for it.

He disclosed that he’s currently negotiating a contract with a candidate whom he declined to name pending a final agreement. Igisomar said the board consultant will be hired on-island through a sole-source contract.

He refused to disclose the specific criteria or preferences they used in hiring the board consultant.

“I am currently in negotiation.and I will do my best to finalize it by next week,” he said during a break in Friday’s meeting that lasted past 5pm.

In justifying the new hire, Igisomar undercored the voluminous work currently being handled by Fund administrator Richard Villagomez.

He said the new consultant, besides assisting the board, will also work with Villagomez in fulfilling other tasks, requests, and information that are expected from the pension agency.

Igisomar said the consultant’s $70,000 salary will come from the “savings” the agency realized when its investment consultant, actuarial consultant, and money managers terminated their services in October.

The board consultant position has never been placed on the board’s formal agenda but Igisomar said the matter has been part of board discussion since last year. He revealed that the recommendation to hire the board consultant was finalized after joint meetings of the personnel and investment committees.

Igisomar said the sole-source hiring is within the bounds of procurement rules.

Earlier this month, the board committees discussed some options on how the agency can reduce its operating expenses and eyed a possible reduction-in-force to cut the agency’s expenses this fiscal year.

Both finance and personnel committees had recommended a 20-percent cut in the Fund’s personnel cost and all others to reflect its declining revenue.

Saipan Tribune learned that the Fund currently has over 20 personnel that cost the agency some $1.2 million annually. Service fees for its investment consultant, actuarial consultant and money managers amounted to about $2 million last fiscal year.