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Fitial says he will sign Fund contribution withdrawal bill
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Posted on Apr 21 2012
By Haidee V. Eugenio
Reporter
Reporter
Gov. Benigno R. Fitial said Thursday that he will sign into law a bill allowing non-retired members of the NMI Retirement Fund’s defined benefit plan to withdraw up to 50 percent of their contributions regardless of years of service and without penalty or the need for them to quit their job.
Fitial received the compromise version of Speaker Eli Cabrera’s (R-Saipan) House Bill 17-226 on Tuesday, shortly before the Fund filed for Chapter 11 bankruptcy.
But some lawmakers and retirees said Thursday that even if the governor signs the bill today or in the next few days, active members may not withdraw their contributions because of the restructuring.
The bill said the non-retired members can apply for and make the withdrawals within 180 days of signing into law.
That 180 days is just about the time Fund officials expect the pension agency to be under restructuring and giving out contributions to active members won’t be allowed during this time.
Under the bill, the rest of the employee contributions to the Fund will be rolled over to the defined contribution plan.
