Attao bill seeks to make up shortfall in retirees’ pension

Rep. Blas Jonathan “B.J.” T. Attao (Ind-Saipan) is concerned about the payment of retirees’ pensions from the casino license fee, saying the actual distribution of the fee as stated in Public Law No. 18-56 is not enough to make up for the 25 percent cut in the pension of all government retirees.

“The Commonwealth needs approximately $17 million to pay in full the 25 percent reduction that was included in the Settlement Fund. Additionally, the Commonwealth will not receive the license fee on the fifth year, which means that retirees will again lose the entire 25 percent of their pension,” Attao explained.

He said House Bill 19-21 that he earlier introduced “replaces the fifth year with the 40th year of license payment, which will be a plus for the casino [since] GDP calculations and the dollar value in the future will increase and a plus for the retirees as their pensions will be a continuous payment from the license fee.”

“I introduced HB 19-21 to provide for the actual intent of PL 18-56, which was to address the 25 percent reduction of CNMI government retirees,” Attao said.

Explaining the license fee distribution, Attao said the distribution of the first $30 million includes approximately $25 million to make up for the 25 percent that was deducted from the retirees’ pensions to include the back payment for fiscal year 2014, $2 million to the First Senatorial District, $2 million to the Second Senatorial District, and $1 million to the Third Senatorial District.

“As you can see, just the initial investment of $30 million has been totally drawn down and from here on out, should HB 19-21 not be enacted, just the 25 percent for retirees cannot be afforded with the $15 million annual license fee,” he said.

He said his concern is that “retirees’ pension payment as stated above will not be the complete 25 percent, which is the intent of Public Law No. 18-56.”

“The retirees will again suffer the reduction in their pension because the fee distribution will not be enough. Retirees shouldn’t have to worry about their pension payment today. We as a people of today should take care of the problems of yesteryears so we can move forward to provide for today’s solutions and tomorrow’s security,” he said.

He also said the CNMI has “a tool in Public Law 18-56 which is being fine-tuned by House Bill 19-021 to direct the fees for the retirees right now so we can remove that problem from our tables.”

HB19-21 is currently with the House Committee on Ways and Means, Attao said.

The law mandates a yearly $15-million license fee from the exclusive casino license holder, Best Sunshine International, Ltd.

HB 19-21 noted, however, that this annual license fee collection is short of what is actually needed to address the pension reduction, which is estimated to cost $17 million.

HB 19-21 intends to amend PL 18-56 “to dedicate the entire license fee collections for the payment of retirees’ pension reduction.”