Senate initiatives to save Fund target public lands income

Citing the need to stem the “crisis” plaguing the NMI Retirement Fund, Senate President Paul Manglona (Ind-Rota) introduced yesterday two initiatives and one bill seeking to help save the NMI Retirement Fund that include transferring certain public lands to the pension agency.

One more initiative is in the works, requiring the Department of Finance to set aside $25 million to pay the Fund, to “guarantee” that the pension agency receives a fixed amount each year.

Manglona, at the same time, is forming a Special Committee on Retirement Fund Issues to be chaired by Sen. Jovita Taimanao (Ind-Rota) to focus on retirement issues and problems, and make recommendations on how to resolve these issues.

“I will be naming all the committee members by [Thursday]. It will be chaired by Senator Taimanao, and will have three to five members,” Manglona said in a phone interview from Tinian where the Senate held its session yesterday afternoon.

Manglona, in his “dear colleague” letter to lawmakers, encouraged the House to also create its own committee to address Fund issues.

Manglona introduced Senate Legislative Initiative 17-13, to authorize the Fund to receive proceeds of existing public land leases for hotels, golf courses, and other large public land leases.

“Once the employer contribution is paid in full, the public lands shall revert to DPL [Department of Public Lands],” he said.

SLI 17-14, meanwhile, authorizes public land interest proceeds, which has been going to the general fund in the past, to be diverted to the Fund until such time that the government debt to the Fund is paid in full.

Manglona also introduced Senate Bill 17-96, which transfers the title of many vacant government properties with buildings on Capital Hill, Navy Hill, Garapan, Rota, and Tinian to the Fund to generate money.

“The bill intends to transfer such properties to the Retirement Fund to offset some of the government’s employer contribution debt to the Retirement Fund,” Manglona said.

DPL Secretary Oscar M. Babauta said yesterday he has yet to see these proposals related to public lands.

Manglona also pitched a proposed pension obligation fund that he said is not a long-term solution but “will help the government buy some time.”

The Senate president also urged his fellow lawmakers to give attention to several pending legislation in both House and Senate aimed at helping the Fund, including temporarily reducing the rebate and remitting the savings to the Fund.

The House could act today on a House bill allowing non-retired members of the Fund to withdraw their contributions from the pension agency without severance of employment or penalties.

The Fund currently has some 2,940 retirees and beneficiaries, and 2,996 active employees, in addition to thousands of family members affected by the Fund’s solvency.

Experts earlier said that the Fund could only have a three-year lifespan considering its assets, liabilities, unfunded liabilities, and lack of government employer contribution payments, among other things.