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Gov’t. settles portion of unpaid dues to Fund
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Posted on Apr 28 1999
In a move to ease worries of retirees over potential delay in their monthly pension, the government yesterday settled portion of its back contributions to the Northern Marianas Island Retirement Fund and promised to settle the rest under a payment plan.
Gov. Pedro P. Tenorio, along with his finance managers, met with Retirement Fund officials and key members of the Legislature to draw up a plan that would reduce the government’s obligation amounting to $21 million.
In the meeting, NMIRF received a check worth over $200,000 representing partial payment for the CNMI government’s unpaid contribution, which the administration has failed to settle due to financial woes.
According to Vicente Camacho, Retirement Fund board chairman, another $1.5 million will be shoveled into the NMIRF coffers after the governor promised to pay part of the unpaid share in May.
Payment for the succeeding months will be discussed in a meeting scheduled for next week, according to officials.
“Retirees will be paid no matter what happens. Everybody will be paid and there’s no cause for concern,” Camacho told reporters to quell fears of retirees that they might not receive their monthly checks.
Since last year the administration has been in default on its payment to the Retirement Fund due to deepening financial troubles. Every month, the government has to come up with approximately $850,000 in contribution money against employees’ share of around $280,000.
But the NMIRF spends over $2 million every month for the benefits of retirees, or close to $30 million annually, and some officials are concerned that the situation would drain the Retirement Fund’s coffers.
NMIRF also says that allowing the back contribution to balloon would make it more difficult for the government to pay out the balance considering its tight financial situation.
“We’re working on a solution to pay our obligation. We will try to pay the retirement fund on an installment basis,” the governor said.
There are about 5,000 government employees who are active members of the fund and 1,200 retirees under pension.
