The Fund, retirees, senators, Sixto, and voters

Senate President Paul Manglona was truly prophetic about the Fund as the collapse will surely be a death blow to our economy. The governor has also recognized that the Fund cannot be allowed to fail. Even though there has been a rift between the governor and the Senate president, they are willing to work together to save the Fund. So if these two leaders can put politics aside for this important issue then it should be easy for the rest of us, as politics will not save the Fund. If anything, politics will speed up the death of the Fund. It was politics that got the Fund in trouble in the first place and it has been politics ever since, which is why we retirees still don’t have a solution.

What has amazed me is that there hasn’t been a conscious effort by all retirees to have a direct say in the solution, even after the judge advised the Fund to ask the retirees because after all it is our money that is owed to us! I admire the Retirement Association and our president, Mr. Camacho, for at least he is trying to influence the Fund board. But the retirees need and deserve much more input, especially with their livelihoods and future at stake. It seems everyone but retirees are deciding about the retirees’ money, which is one of the main reasons I got involved as a retiree and the other reason being that I know how to fix the problem. The Fund can be saved as the bulk of the solution has really been offered by the court. The only question is when will the board start doing the work of synthesizing a plan, which is what I’m concerned about most! The Board is truly challenged and I understand their hesitation to pull the trigger, which makes it clear that the leadership of Sixto Igisomar is missed. The board has even made public references to waiting for Sixto’s confirmation to move on the consultant position to release their full intentions and plans.

The politics of Mr. Hofschneider and his political baggage may have also caused the Senators to delay Sixto’s confirmation. We got a break when Mr. Hofschneider pulled out because we really didn’t need another politician in the middle of this, no disrespect intended. But it is good to know that the board does realize they will need a person to lead and establish a board presence in all the activities to fix the problem. The board only makes policies and there must be someone on the ground to take the bull by the horns and do the work. It is also complicated and too late in the game to be making laws to create a task force, especially when most of the solution has already been offered by the court. A task force will be just more politics with arguing about who is on the task force, conflicting views on what and how to do it—they will be over before they can even start! It is time to execute a plan and this is literally a one-person special operation working with the existing stakeholders to synthesize a plan for retirees!

I can only pray retirees aren’t being set up for another double-cross. I have done my homework and concluded that there are actually three potential outcomes for the Fund, even though nothing has been said about the third horrible alternative of bankruptcy. But the board must offer a solution to the court or be in contempt. In either case (receivership or filing for bankruptcy), the board will have failed the retirees who will lose big time again! If the board doesn’t do its homework to create a plan for presentation to the court, the board will have failed in their fiduciary duties and screwed retirees who won’t be able say anything or do anything about their benefits! If the Fund fails, the CNMI will also lose a big portion of the consumer spending power that will surely have a domino effect on the economy—we have no choice but to save the Fund.

The judge has given us a road map and we only need to follow it and do the work. Senators need to know that the board needs Sixto bad and they needed him a month ago! I can appreciate the Senate’s caution and I understand the senators’ technical concerns that have been raised about his confirmation but please consider these facts: Sixto will only be making policy and the Department of Commerce does not have anything to do with the Retirement Fund other than paying their employees’ share to the Fund. Furthermore, it was made clear publicly that the board will figuratively be a body functioning without a head until Sixto returns because he had set the agenda and the strategies for fixing the Fund. It is obvious the board does not want to deviate and we can’t blame them—no one wants to be blamed if the Fund fails. We need to be thanking Sixto for his willingness to serve and put his reputation on the line with this highly charged and extremely important issue. If someone wants to contest Sixto’s appointment let them go ahead and it can be handled after the Fund has been set on a course to be saved six months from now. The board, retirees and their families, the governor, and the rest of the community are waiting on you senators and the clock is ticking!

The constitutional amendment proposed by the governor is clearly the best option of using Article 11 for solving the problem with the least and even no effect on the retirees’ benefits. But getting the amendment to pass is the real challenge, which is why I made recommendations in the board meeting to recall the law and place a “fixed property tax” that will be governed by a “cost of living index” to give the law a better chance of being passed. These changes will add more accountability to the people as a perpetual income source with virtual ownership. This will solve the present funding problem and guarantee that the indigenous people will always receive a fair income from these properties. In fact all government property sold for commercial use should come with a fixed property tax. We must face it, death and taxes can’t be avoided no matter how much we try. But think about it, when poor people need money they have to find work or find something to sell or pawn and that is exactly the predicament we are in. The government must face up to its debt to the retirees and pay it or everyone is going to suffer even more. So I hope voters will be ready and willing to do their part to fix the Fund by approving the amendment once it has been fixed, if it gets fixed.