Inos, Kilili explore solutions to pension fund’s woes

Lt. Gov. Eloy Inos and CNMI Delegate Gregorio Kilili C. Sablan have started exploratory talks on alternative solutions for the troubled Retirement Fund pension program to fend off its projected demise in three years’ time.

Sablan told Saipan Tribune that his meeting with Inos lasted two hours on Tuesday morning, solely focused on issues surrounding the pension program’s woes.

Although no concrete plans were reached, Sablan assured the continuous collaboration of his office with the Fitial administration in finding a solution to the Fund’s problems.

Sablan, in brief remarks at the Public School System’s meet-and-greet with parent leaders on Tuesday, emphasized that the CNMI has to make a lot of decision on its own regarding the pension program before it appeals for federal assistance.

This early, however, the congressman warned that Congress will not bail out floundering pension programs, as shown by what’s happening with similar programs in other states.

Sablan said he has also started exploring federal grants that may help save the CNMI’s pension program.

He described the Fund’s current situation—where active members continue to contribute their share—“as obviously not working and is not going to work.”

“Right now, you [government employees] are throwing your money into a program that you don’t see the returns. So why don’t we ask those people who are active members to take their money and put it instead into a program that they know, when they need it most, they can get something?” he told the crowd of about a hundred parent-leaders.

Sablan, however, said he has no position yet if he favors the cutting the benefits paid to members, saying the idea is just one of the scenarios presented by the Fund’s consultant.

Buck Consultants earlier discussed with the administration, Fund officials, and lawmakers scenarios that will help save the pension plan and these include reduction of members’ benefits from 25 percent to 50 percent on top of eliminating the cost of living allowance and future disability members, in addition to remittance from the government.

Today, Sablan is expected to attend the general meeting called for by Commonwealth Retirees Association to adopt positions on several issues about the pension system.

As of Aug. 31, the Fund’s portfolio was valued at $278.594 million—an amount projected to last only up to 2015 to pay for members’ pensions and benefits.