Senate to pass at least 6 Fund bills next week

The Senate is poised to pass next week at least six of 23 pending measures impacting the NMI Retirement Fund, including an initiative that allows a 99-year public land lease for golf courses, a House bill allowing withdrawal of retirement contributions by rollover to the defined contribution plan, and an initiative allocating 25 percent of government revenues to pay for employer contributions to the pension agency.

Senate President Paul Manglona (Ind-Rota) and Sen. Jovita Taimanao (Ind-Rota) separately confirmed yesterday an agreement to move these six pieces of legislation forward on Tuesday. These include the Senate-amended versions of Senate Legislative Initiatives 17-13, 17-14 and 17-15, Senate Bills 17-94 and 17-99, and House Bill 17-226.

Taimanao said two other bills could be added to the Senate list, depending on the House of Representatives’ action on these bills in today’s session.

Manglona postponed today’s Senate session to Tuesday, wherein they plan to take up only Retirement Fund-related bills. Another Senate session will be scheduled the following day to tackle other measures.

Agreement on the six amended bills and initiatives came after another meeting yesterday morning between the Senate Special Committee on the NMI Retirement Fund headed by Taimanao, Fund officials, and the Commonwealth Retirees Association.

Sen. Ralph Torres (R-Saipan) said he supports Fund-related bills “as long as the Fund and the retirees association see them as helping the Fund.”

Lawmakers and the Fitial administration have recently been aggressive in moving legislation that would help prolong the Fund’s lifespan, which was earlier projected to last only three years.

Senate floor leader Pete Reyes (R-Saipan) also said yesterday that he supports bills that will help the pension agency, although he believes some of them are “band-aid solutions” and not “permanent solutions.”

Initiatives

SLI 17-13, SS1, authored by the Senate president, transfers to the Fund the disposition and management decisions on public land leases of golf courses.

The amendment to this initiative mainly involves allowing the Fund to lease the public land golf courses for 99 years for $50 million or for an amount determined by two certified independent appraisals, whichever is greater.

Upon the Fund’s approval, the Department of Public Lands is supposed to execute a 99-year lease pursuant to the terms determined by the Fund.

“[DPL] shall not transfer an interest in any public land golf course without the approval of the Legislature in a joint session,” the initiative says.

Under this amended initiative, DPL shall hold fee simple title to all existing public land golf course leases.

These are the Coral Ocean Point Golf Course, LaoLao Bay Golf Course, Rota Resort Golf Course, Marianas Country Club Golf Course, and all other golf courses to which a current land lease is in effect with the CNMI government.

However, the management and disposition decisions-including the authority to lease, extend or renew a lease-shall be vested in the Retirement Fund, the initiative says.

The second initiative, SLI 17-14, SD1, also authored by Manglona, authorizes the transfer of funds from the Marianas Public Land Trust to the Retirement Fund.

The amendment to this initiative requires the transfer of all MPLT interests and dividends (minus administration expenses) to the Fund every three months so long as the Fund has an unfunded liability. This amendment shall apply beginning the fiscal year after the loan to the Commonwealth Utilities Corp. is paid in full pursuant to Public Law 17-2.

The third initiative, SLI 17-15, SD1, also by the Senate president, sets aside 25 percent of revenues to pay the government’s employer contribution to the Fund each fiscal year. The original initiative sets aside $25 million for such purpose every fiscal year.

Under this initiative, the governor shall first set aside no less than 25 percent of revenues to pay the government employer contribution to the Fund each fiscal year until paid in full and all liabilities of the defined benefit plan pensions are satisfied.

House bill

The Senate is also offering an amendment to a House bill allowing non-retired Fund members to withdraw their contributions from the pension agency without severance of employment or penalties.

House Bill 17-226, House Draft 1, authored by Speaker Eli Cabrera (R-Saipan) will be amended by the Senate to allow the rollover of the contributions to the defined contribution plan, or DCP. The Senate amendment also authorizes hardship loans within the DCP.

It also amends the rebate offset amount to provide an alternative funding mechanism to pay for the rollovers. This provision is taken from a similar proposal from House minority leader Joseph Deleon Guerrero (R-Saipan).

Senate bills

The Senate is also poised to pass Senate Vice President Jude Hofschneider’s (R-Tinian) SB 17-94, SD2, repealing Public Law 17-51, which allows NMI Retirement Fund beneficiaries to sue on behalf of the pension program if the board refuses to bring such legal action. The amendment includes suspending the Fund’s procurement restrictions for 90 days.

A similar repealer bill is set for House action today.

This is one of the bills that Taimanao said could be added on to the Senate list for consideration next week.

The Senate is also set to pass SB 17-99, transferring the administrative functions and liability of the Government Life and Health Insurance Program to the Department of Finance by amending the NMI Retirement Fund Act.

At least 10 of 23 pending bills and initiatives under review by the Senate special committee will either add or reduce costs for the Fund ranging from $60,000 to over $100 million. Other pieces of legislation have yet to be fully reviewed.