‘I’ve been reminding Legislature; they had a year to act’

David Atalig

Finance Secretary David DLG Atalig pointed out yesterday that he reminded the Legislature in October 2021 that they have a full year to come up with a revenue-generating legislation to pay for the 25% pension of government retirees in fiscal year 2023.

Atalig said in an interview with reporters that media archives would show that he shared with the Legislature last October that they have a year to come up with revenue-generating bill or options to help the retirees and that he had urged them not wait up to the last minute.

The Finance secretary noted the Legislature’s inaction when asked for comments about two lawmakers’ criticism of the governor’s revised budget submission for the government’s operations in fiscal year 2023.

At a recent session of the House of Representatives, House Ways and Means Committee chair Rep. Donald M. Manglona (Ind-Rota) questioned Torres’ proposed revised budget submission, which according to him does not include operational budget for any of the agencies, yet allocates salary increases for Cabinet members.

At the same session, Rep. Christina E. Sablan (D-Saipan) shared Manglona’s disappointment, describing the governor’s proposed budget submission as “reckless and completely irresponsible.”

Manglona and Sablan said no proposal was also included for the payment of the 25% pension to the Settlement Funds for the retirees.

Atalig pointed out yesterday that Public Law 20-10 authorizes him to pay the 25% pension for the retirees, much of that sourced from the casino tax revenue. “As we all know, the casino [Imperial Pacific International (CNMI) LLC] has not been operating for a couple of years, so there’s no revenue,” he said.

Atalig said that in his April submission of the administration’s budget proposal for the government’s operations for fiscal year 2023, he reiterated with the Legislature the administration’s lack of authority and resources to supplement the payment of 25% pension. He also told the Legislature at that time that the 25% pension in fiscal year 2022 is being funded with the use of the Community Disaster Loan the CNMI received from the Federal Emergency Management Agency. He said the use of the loan is allowable and is part of the CNMI’s spending plan for that loan.

In his April budget submission and subsequent interview with Saipan Tribune, the Finance secretary said the Legislature should act soon, considering that there is no $13 million casino Business Gross Revenue Tax collection in fiscal year 2023 to pay the 25% pension.

Atalig said yesterday that if the Legislature gives Gov. Ralph DLG Torres’ 100% reprogramming authority, that allows him (Atalig) to use other resources to pay the 25% pension of the retirees.

Atalig said he and Torres are committed in looking for resources to ensure that retirees continue to get their 25% pension so that they can have the full 100% pension.

“It is the governor’s mission since the very beginning to ensure that we get to pay the retirees’ full pension. We’re obligated to do so,” he said.

Under a global settlement agreement in Betty Johnson’s class action against the CNMI government and the NMI Retirement Fund, the government agrees to make annual payments that will enable the Settlement Fund to pay at least 75% of the class members’ (retirees) pension benefits. The government is not mandated under the settlement to pay the retirees’ 25% pension.