Wilshire Associates assures continued work with Fund

The NMI Retirement Fund’s investment consultant assured members and retirees yesterday that it will continue working with the Fund in spite of the ongoing crisis at the pension agency.

In a statement to Saipan Tribune yesterday, Wilshire Associates spokesman Kim Shepherd said the company will continue to assist the Fund.

“Wilshire Associates is encouraged to learn that unprecedented attention is given to the Northern Mariana Islands Retirement Fund during this time of funding crisis. Our firm will continue to assist the Fund as it addresses the challenges before it,” she said in an email.

Wilshire Associates was hired by the Fund in October 2010 to replace former investment adviser Merrill Lynch.

The Fund is currently under a state of emergency. That led to the dissolution of its board of trustees and the transfer of the program’s function to the Department of Finance.

According to press secretary Angel A. Demapan, the Fitial administration is now developing its organizational plan for the pension agency.

“At this point in time, it is still premature to discuss what changes, be it personnel, professional services or operational, will be effectuated,” he said when asked about any changes in the Fund’s operation.

Demapan said the administration’s transition plan is being finalized.

The Legislature has 60 days to either approve or reject the governor’s emergency declaration before it takes into effect.

On Wednesday, active and retired Fund members expressed concern about the capability of the Finance Department to run the program effectively. They are worried that the Fund’s assets may be diverted to other purposes rather than pensions and benefits.

Also, members are worried of a possible write-off of the $320 million the central government owes the agency, representing unremmitted employer contributions.

Commonwealth Retirees Association chair Larry Cabrera disclosed that a meeting recently took place between Fund administrator Richard Villagomez and Lt. Gov. Eloy S. Inos, where the former was assured that it would be “business-as-usual” for the Fund after the transfer and that the pension plan’s assets will be kept untouched.

The Fund portfolio was estimated at a little over $250 million two months ago. The pension program is expected to last up to two years only due to its unfunded liabilities.

The Fund has 6,000 active and retired members.