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Can this be right?
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Posted on Apr 27 2008
Let’s see now, if I understand this correctly, House Bill 16-90, among other things, will mandate the central government to reduce its employer contribution rate to the defined benefit employee retirement plan from 18 per cent to 11 per cent. It will also mandate that one-half of the SAVINGS (?) (Supposedly, that’s three and one-half per cent) will be used to pay a subsidy to CUC so it can buy fuel.
I also read (on Sunday) that Buck Consultants has said that the central government must pay 37.39 per cent of payroll JUST to keep the fund going (healthy?)—About $51.62 MILLION per year. If that’s correct, that amount is more than one third of the entire CNMI budget. The proposed 11 percent is nowhere near that.
But I thought the central government has repeatedly stated it couldn’t pay anything to the fund for the last two years—and didn’t. A law was even passed so they wouldn’t have to pay and wouldn’t violate anything by not doing so. And, just recently, the central government stated it had no more money to reprogram or to help CUC buy fuel. So now, all of a sudden, the central government HAS money to pay 11 per cent to the fund AND three and one-half per cent to CUC and will pass yet another law to do so?
That sounds a bit like penny wise and pound foolish—too little, too late. I can’t wait to see where this newfound 14 and one-half per cent will come from. I’ll even bet the central government can’t wait either!
Looks like Bill Stewart, and others, may be correct: The fund will be out of money and no one will receive a retirement paycheck after about 2018 or so. When do YOU plan to retire? And how long will you live after retirement? Regardless, maybe you should consider something besides a government retirement check for your support.
I guess this all means that the central government is willing to sacrifice not only the retirement of its employees, both past and present, but CUC as well?
[B]Dr. Thomas D. Arkle Jr.[/B] [I]San Jose, Tinian, ex-pat[/I]
