Previous Story
$14.6M Fund’s own assets spent on pension
|
Posted on Nov 23 2006
For failure of the central government’s failure to pay its employer retirement contribution, the NMI Retirement Fund has used up $14.6 million of its assets to pay off pension obligations in the last four months.
This is undoubtedly “worse” than the Fund’s previous experience with tapping its own resources.
Fund administrator Mark A. Aguon said the Fund also set aside $12 million out of its investment money in 2003 for pension and refund obligations.
But this amount was not used as quickly as this year.
He said the $12 million was not depleted until middle of this year.
“It took us only four months to finish over $14 million as compared to three years for $12 million,” said Aguon.
The Fund board authorized last June to take out $14.4 million from its investment money to pay off pension and refund obligations for the remainder of fiscal year 2006.
This came after the central government enacted a law suspending its employer contribution to the Fund for 18 months ending in Sept. 2007.
As of April this year, the central government’s outstanding debt with the Fund in employer contribution totaled $85 million.
[B]
Up to $50M[/B]
For fiscal year 2007, the Retirement Fund board approved to set aside over $35 million in investments money for pension.
This may reach up to $50 million, Aguon said.
“I’m authorized to do that. We won’t make the retirees suffer. We’ve got to give them what’s due them,” said Aguon.
He said earlier that withdrawal of money takes place only when needed, which means twice a month for the 15th and 30th pension payment.
Each withdrawal also requires concurrence from the board although it had authorized the total spending.
The Fund releases nearly $5 million a month for pension obligations.
The amount varies, depending on the number of beneficiaries and the obligations involved.
For fiscal year 2005 alone, the pension payment reached $60 million.
