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Is this self-governance?
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Posted on Mar 24 2009
Is this what our leaders meant when they say our right to self-governance?
We continue to ask ourselves what will happen to all those retirees who have been receiving a steady semi-monthly retirement income who are solely dependent on such income? One doesn’t need a crystal ball to foresee the dire, indeed tragic, consequences of many pensioners of advanced age when they no longer have the financial security currently provided by the NMI retirement program.
As I see it, the following will surely result: Since the Legislature opted out many years ago from participating in the U.S. Social Security program which provides a financial cushion for millions of Americans by issuing pension checks, this program will not be available to many retirees in the NMI.
I believe most of you know why our local politicians opted out in favor of their own NMI retirement program over which they could exercise total influence—something they could not do with a federal program. We now see the result and many will suffer.
The average monthly U.S. Social Security check paid in 2004 to recipients was $1,076 for men and $826 for women. Compare that to zero from a soon-to-be-bankrupt NMI Retirement Fund. Of course, this amount varies depending upon the amount paid in—but there is a basic minimum amount paid to all. When the Fund goes broke in three to five years (less than three years by my estimate), current low group insurance rates (both life and supplemental medical & health) will probably no longer be available to retirees and to those currently paying into the Fund but not yet retired, even if the older retirees with an existing medical condition are able to purchase coverage at any cost, which is extremely doubtful. The government has apparently not considered this issue.
Again, whether you agree or disagree, this is inevitable and as real as it gets. It’s unfortunate that our leaders including the present continue to state that these were inherited problems. The truth is Gov. Benigno Fitial inherited his own creation, for he is from the past, a House member and speaker.
[B]Gregorio Cruz Jr.[/B] [I]Taotao Tano CNMI Inc.[/I]
