Recall of board consultant position in the offing

The hiring of Heinz Hofschneider as consultant for the NMI Retirement Fund board may not push through as planned as a result of rapid changes in the situation of the pension agency.

Sixto K. Igisomar, former board of trustee chairman, hinted this to Saipan Tribune yesterday, adding that any decision to pursue contract negotiations with Hofschneider now lies with the board, to which he is no longer connected.

Igisomar’s re-appointment to the Fund board has yet to be confirmed by the Senate.

“I’ve been gone from the board, and even it’s just a short time, many things have happened with the Retirement Fund. Now the board is dealing with several issues such as court deadlines, receivership issue, and the Jorgensen case. Many things had transpired and I cannot answer now if the board still feels the need to hire for the position,” said Igisomar.

Last week, trustee Bernardita Palacios, who was elected as the board’s new chairperson, said that the board will take no action on the consultant issue until such time that Igisomar returns to the board.

The board approved the hiring of Hofschneider as board consultant in January this year, with Igisomar designated as the sole negotiator of the contract. Hofschneider was to be paid $70,000 per annum. Signing was then delayed due to unfinalized deliverables and conflict in schedules until it was overtaken by the expiration of Igisomar’s term in March.

Igisomar pointed out, though, that “all will still depend” on the board of trustees. During the board’s approval in January, Igisomar described the consultant position as “necessary” to meet the strategies laid out by the board to save the pension plan from collapse.

“The board can usually do whatever they feel is necessary and hiring for the position now depends on the short- and long-term goals of the Fund. If the board feels that we still need to hire a consultant, we will go that path. I have my faith and trust in the board,” he added.

Experts have revealed that without the infusion of new funds to the pension plan, its lifespan is projected to last up to less than three years.

The Fund has about $253.3 million in its portfolio as of March. Its unfunded liability amounts to $900 million.

At present, the Fund has about 6,000 active and retiree members.