25 pct. pension breakdown now out

Retirement settlement fund trustee Civille & Tang released to Gov. Eloy S. Inos and lawmakers a breakdown by island of the estimated $16.4 million needed to fund retirees’ 25-percent deferred pension payments for fiscal year 2014, even as negotiations are still ongoing for a final grant of an exclusive Saipan casino license and the eventual release of a $30-million bank deposit.

But as of yesterday afternoon, the governor said discussions are still continuing whether it would be the Department of Finance or the NMI Settlement Fund that will process these payments.

Civille & Tang, as the settlement fund trustee, currently processes retirees’ 75-percent pension payment.

The remaining $13.6 million from the $30 million two-year advance casino license payment is expected to be used to pay the interest on former defined benefit plan members’ withdrawn contributions, among other things.

Civille & Tang said an estimated $11.05 million of the total $16.4 million is for Saipan residents or retirees, while $1.35 million is for Rota residents and $1.05 million is for Tinian residents.

The remaining $2.95 million is for off-island residents or retirees.

Attorney Joyce C.H. Tang of Civille & Tang PLLC told the governor and lawmakers that the estimated $2.95 million for off-island residents includes “all off-island residents who retired while residing on Saipan, Tinian, and Rota.”

Tang, in her July 15 letter to the governor, Tinian Legislative Delegation chair Sen. Frank Borja (Ind-Tinian), and Rota Legislative Delegation chair Teresita Santos (Ind-Rota), said their estimate for assisting the CNMI government with providing the “calculations, preparing and mailing the statements, postage and other research required is approximately $17,000.”

Inos, in an interview on Capital Hill yesterday, said they are still “trying to find out what’s the most practical and easiest way” to process the payments.

Yesterday afternoon, the Tinian Legislative Delegation was supposed to meet with Retirement Fund’s Lillian Pangelinan but only the lawmakers showed up.

Borja said the Tinian Legislative Delegation wanted to find out the specific breakdown for the “$2.95 million” for retirees now living off-island so that Tinian and Rota legislative delegations would know how much they have to specifically appropriate for the 25 percent pension payment and other activities.

Rota and Tinian each get $2 million from the $30 million, representing the first and fifth year of casino license payment from the holder of the exclusive license.

Best Sunshine International Ltd. is now negotiating with the Lottery Commission to come up with a casino development agreement for the eventual grant of an exclusive license to develop a $2 billion integrated casino resort on Saipan.

The issuance of that license will trigger the release of the $30 million deposit in the bank that will fund the payment of retirees’ deferred 25-percent pension, among other things.

The governor reiterated this process yesterday, adding that there is no specific date as to granting of the casino license and the 25-percent pension checks.

“Time is of the essence,” he added. The governor said he is not part of the negotiation for a casino development agreement.

Rota, Tinian bills

Rota and Tinian lawmakers already formally introduced during the House’s July 22 session separate local bills appropriating $2 million each from the $30 million Saipan casino license, under Public Law 18-56 or the Saipan casino law.

Rep. Trenton Conner (Ind-Tinian) introduced House Local Bill 18-59.

Conner said yesterday once the Tinian delegation learns about the specific breakdown for off-island retirees, then they will amend the bill to be able to appropriate the remaining amount for other activities.

For example, the settlement fund trustee said they estimate that $1.05 million is needed to fund Tinian retirees’ 25-percent pension for 2014.

This leaves almost $1 million that can be appropriated for other activities.

Conner and Borja, however, said the Tinian delegation is also contemplating whether to also pay the second year of the deferred 25-percent pension.

The governor, when asked for comment on whether the fifth year pension should also be paid after the release of the $30 million deposit, said, “We should be up and running by the fourth year.”

Santos, meanwhile, introduced House Local Bill 18-58 appropriating $2 million for Rota retirees, among other things.

Of the $2 million total, $1.35 million is for the payment of retirees’ 25 percent deferred pension.

Santos’ bill also appropriates $290,000 for the payment of debt owed the Saipan and Northern Islands Legislative Delegation.

The other $360,000, meanwhile, will be appropriated by the Rota Legislative Delegation for the island.

Hotel rooms

House floor leader Ralph Demapan (Cov-Saipan), co-author of the Saipan casino bill that became law, said the casino investor would build the casino “from the ground up.”

The casino investor is required by law to build a casino and resort with a minimum of 2,000 guest rooms. The law states that “the purchase of an existing hotel shall not be included in satisfying the requirement of building 2,000 rooms.”

Best Sunshine’s chief operating officer Terence Tay said they have been continuing to survey available properties on Saipan for the integrated casino resort but declined to say which ones are on the top of their list.

When asked for comment, the governor said the investor may buy a hotel with 400 rooms, for example, but that could only mean they will have a total of 2,400 rooms.

“But the 2,000 rooms are [still] going to be built,” Inos said.