FREQUENTLY ASKED QUESTIONS

[B]Will I be paid my next benefit payment?[/B]

Yes. The fund has taken steps to ensure that beneficiaries will receive their full benefits for at least the next two months. The fund also intends to immediately engage in discussions with the official committee of creditors, once it is formed, to discuss the terms on which benefit payments should continue after the first two months of the case and beyond.

[B]Will the payment schedule change?[/B]

It will not for the first two months of the case. The Fund also intends to immediately engage in discussions with the official committee of creditors, once it is formed, to discuss the terms and schedule on which benefit payments should continue after the first two months of the case and beyond.

[B]Will I continue to receive my health insurance benefits?[/B]

Yes. For at least the first two months of the case. The fund also intends to immediately engage in discussions with the official committee of creditors, once it is formed, to discuss the terms and schedule on which benefit payments should continue after the first two months of the case and beyond.

[B]I am on disability. Does this filing affect me?[/B]

You will continue to receive your disability benefits for at least the first two months of the case. The Fund also intends to immediately engage in discussions with the official committee of creditors, once it is formed, to discuss the terms and schedule on which benefit payments should continue after the first two months of the case and beyond.

[B]I am receiving workers compensation. Does the filling affect me?[/B]

You will continue to receive your workers compensation benefits for at least the first two months of the case. The Fund also intends to immediately engage in discussions with the official committee of creditors, once it is formed, to discuss the terms and schedule on which benefit payments should continue after the first two months of the case and beyond.

[B]Are the assets of the Fund protected in this court process?[/B]

Yes. Upon the filing of the Chapter 11 case, an “automatic stay” was imposed to protect the Fund’s assets.

[B]I am a retiree. Will I get a say in court?[/B]

Yes. The Chapter 11 process is designed to facilitate creditor input. In fact, the United States Trustee will solicit interest from creditors to sit on an official committee that will advocate on behalf of all creditors. Furthermore, the Fund encourages all retirees to participate in the process, which is a primary benefit of the Chapter 11 process.

[B]What is expected to happen to my retirement account?[/B]

The Fund’s goal through this restructuring process is to emerge from the Chapter 11 case with a confirmed plan of reorganization that will adjust benefits to a level that will allow the fund to continue some level of benefit funding for the remainder of the lives of all retirees. Until we engage in discussions with representatives of creditors (which we intend to do as soon as possible), we cannot speculate on what the plan of reorganization will look like at this time. But once a plan is filed, it will be submitted to creditors for their vote.

[B]I put in my application to withdraw my contributions. What is going to happen to my application?[/B]

Your contributions and the rest of the Fund’s assets are under the protection of the bankruptcy court. Our intent is to work with the creditors committee (once formed) to develop a plan that is in the best interests of all creditors.

[B]I didn’t cash my retirement check. Will the bank still honor the check?[/B]

As part of the initial relief requested in the case, we are seeking court permission to honor checks issued prior to the bankruptcy.

[B]I do not have a bank account and cannot receive ACH transfers. Will I still get my check?[/B]

If you did not establish a bank account for receiving ACH transfers prior to the April 15 benefit payday, then your benefit has not been processed, consistent with the Fund regulations and the notices previously sent to you with your benefits checks. You can receive your benefits by establishing a bank account that can receive ACH transfers and bringing the information to the Fund so that Member Services may establish the direct deposit to your account. The Fund has taken steps prior to filing in federal court to ensure that members continue to receive benefits for at least two months in the same amount as before the Chapter 11 filing, but all payments will be made by ACH direct deposit only, there will be no more paper checks issued for benefit payments.

[B]What is the current status of the Fund?[/B]

The Fund continues in existence during the Chapter 11 process.

[B]Is it possible that our payment amount will change as a result of its Chapter 11 filing?[/B]

Yes. As many people know, if the fund continues making payments at the current level, it is expected the Fund could be depleted by September 2014 and unable to make any payments after that. The primary goal of this restructuring process is to align benefit payments with the current funding level so that the Fund can continue making payments for the remainder of all beneficiaries’ lives.

[B]Why did the Fund decide to enter into a court process of this nature?[/B]

The Fund and its board of trustees carefully considered all known options to address the underfunding problem. And, after consultation with its professionals, the Fund elected to file for Chapter 11 relief to restructure its financial obligations. The Chapter 11 process provides many benefits, including: (a) it allows creditors to have a say in the course of the case; and (b) creditors are permitted to vote on the plan that is ultimately proposed.

[B]What is being done to protect our right to withdraw from the Fund?[/B]

The Fund is assessing all of its assets and obligations, and intends to discuss withdrawal requests with the official committee of creditors, once it is formed.

[B]Why aren’t you trying to collect in federal court?[/B]

The U.S. Bankruptcy Court is a federal court, and the Fund intends to explore all options available to it to collect on the judgment against the government.

[B]Why didn’t you give the Legislature time to come up with a solution?[/B]

The Chapter 11 filing does nothing to stop the legislature from continuing to work on a solution. In fact, the Fund hopes that the Legislature will recognize the Chapter 11 case as an opportunity to participate meaningfully in the discussion as to how to address the underfunding problem.

[B]Why didn’t you give Judge Govendo time to come up with a solution?[/B]

Under the circumstances, the Fund believed it was necessary to begin the Chapter 11 proceeding as soon as possible so as to maximize the Fund’s chances to reorganize and continue making benefit payments at a sustainable level. Through the restructuring process, the debtors will discuss with the creditors committee (once formed) the options that had been under consideration in the case before Judge Govendo.

[B]How will I find out about court filings?[/B]

We are discussing with our professionals various options to help creditors stay abreast of case developments. It is likely we will use the Fund website to post needed information or to provide directions on where such information can be obtained. The Fund website is: http://www.nmiretirement.com//.

[B]How will I know what is going on with the court case?[/B]

We are discussing with our professionals various options to help creditors stay abreast of case developments. It is likely we will use the Fund website to post needed information or to provide directions on where such information can be obtained. The Fund website is: http://www.nmiretirement.com/.

[B]Why was a new corporation set up?[/B]

Prior to the court filing, we formed a new CNMI company called Pension Holdings Corporation. This new company’s sole purpose is to satisfy the Fund’s obligations to Beneficiaries for a period of up to two months. In other words, you will continue to receive your benefit payment per our normal payment schedule and life and health insurance coverage for the first two months after filing.

[B]When I retire will I receive my retirement payment from the Fund?[/B]

The purpose of this Chapter 11 case is to align current payments of benefits with the Fund’s current assets. The goal is to emerge from the case with the Fund’s obligations restructured so that the Fund can continue providing benefits far into the future when you retire.

[B]I’m in the process of retiring. What do I need to do? Can I still retire?[/B]

The Fund will be permitted to continue processing your retirement. The payment of benefits to you would be subject to the same treatment as benefits paid to existing retirees.

[B]What is my expected monthly payment upon retirement?[/B]

The Fund will work with its professionals and the creditors committee, once formed, to determine the amount that can be paid while at the same time ensuring the fund can remain in existence and paying benefits for the remainder of your life and the lives of your fellow fund members.

[I]Source: NMI Retirement Fund[/I]