Gov’t debts to Fund balloon to $43 million

Hopes by the NMI Retirement Fund to recover over $43 million owed by the government in unpaid contributions and other debts continue to dim as the House Ways and Means Committee has yet to commit on how to meet the mounting financial obligations.

Committee chair Rep. Antonio M. Camacho said a decision will have to come at the end of a series of budget hearings being conducted by lawmakers on the FY 2001 spending proposal from the governor.

Settlement of at least a portion of the huge government debt to NMIRF “is on top of the list of concerns by the committee, but the outcome of the budget meetings will dictate what actions we can take,” he told reporters.

The Ways and Means Committee chair earlier had asked Retirement Fund Administrator Juan S. Torres for the breakdown of the arrears, unpaid accounts and contributions as part of the budget review.

Based on his letter to Mr. Camacho dated June 15, he noted the persistent failure by the Tenorio administration to remit its share on behalf of the nearly 5,000 government employees. As of May 20, 2000, the amount stood at $32.2 million — up by $2.1 million a month before.

In addition, some $781,000 of its share for Prior Service contribution have not been paid as well, while appropriations earmarked by the Legislature for FY 98 and 99 totaling $6.53 million have yet to reach the agency.

The 30 percent lump sum bonus extended to government retirees — benefit granted to encourage early retirement despite lack of funds — had cost NMIRF more than $3.5 million when it agreed to shoulder such amount on behalf of the CNMI government from 1993 to 1995.

Mr. Torres has appealed to the House committee to identify local resources that can be used to reduce the $43 million obligation to the Retirement Fund, noting that some of these debts were long overdue.

“Please see what you can do to help alleviate our poor cash flow position,” he wrote to Mr. Camacho. “Perhaps, you may initiate an appropriation bill to reimburse us at least for [the 30 percent bonus payment] which is almost eight years overdue.”

But the Ways and Means Committee has yet to discuss the request as it is presently conducting meetings with several department and agencies to hear their position on the proposed $217 million budget for the next fiscal year submitted by Gov. Pedro P. Tenorio last April.

“We are not expecting [surplus budget],” the chairman explained. “By attrition, we could find some ways to find money to meet the obligations to the retirement program.”

Amid its tight financial condition, NMIRF officials have called on the Legislature to plug loopholes on the current retirement laws as they continue to deplete its assets and resources when the government’s share is not commensurate to benefits sought for retirees.