Active employees and Chapter 11

To active employees of the DB plan: As you may already know, you are the funding mechanism of the Fund. The money that you put into the Fund every payday is supposed to be reserved for your future retirement. Instead it is used to pay current retirement pensions, legal fees, employees (even the current $500-an-hour Boston attorneys). In short, your money is being used for everything but its true intent.

Here is the conundrum the Fund faces: It needs your money to fuel the Fund. At the same time it needs to eliminate you as a possible vested retiree (lessen overall liability).

Here is the big picture in a nutshell: The Fund’s overall intent of invoking Chapter 11 is “survivability of the Fund” at all costs. To do that, they will likely try to do two things: 1) reduce benefit payments up to 58 percent for current retirees, 2) make it more difficult or impossible for active employees to withdraw their contributions (equal money coming in and equal money going out)

The problem: There isn’t enough money in the Fund to ensure that you will be able to enjoy the same benefits many of the retirees have already attained.

Additionally, there will not be enough workers below you to work for you when it is your turn to retire (the Legislature closed the DB plan 2007).

Can you afford to continue paying into the Fund for the next five, 10, 15 years? Do you really think your money will still be there? There is a reason Judge Govendo ordered the Fund to set aside $113 million for your refunds!

To current retirees: We are all connected, it’s a small community. In our hearts of hearts, we are rooting for you. The Chapter 11 federal court needs to explore every option to ensure that you continue getting the money that was promised you. They have the power to make the government sell assets, raise taxes, invoke Social Security, etc. But that will only work if you let us go. You see, you can’t afford us. Why? Because we are 3,200 people. They can afford to bail you out-but there is no way they can afford to make it work for all of us. On our side, we can’t afford to keep paying into a system that we will not benefit from.

Active employees: This is a crucial time for you. Stand up for your rights. If the Chapter 11 court doesn’t hear from us, it is more likely to allow us to keep paying into a system that will not benefit us. We need choice-choice to stay in or choice to get out.

Active employees, please come to the American Memorial Park Theater this Tuesday, May 8, at 6:30pm. Goal: We need 3,200 signatures on a petition to the court demanding choice. Can you carry a petition to your agency and gather signatures? Come network with us! If you can help in any way please contact me at jburke@hotmail.com. Thank you for your time,

Mark Staal
As Matuis, Saipan