Bill guaranteeing retirees’ 25% to be amended

An amendment is brewing for a House bill that would guarantee 25% of the retiree pension through a $15-million allotment from the casino license fees.

The decision came after much deliberation from the legislators during a Senate session last Tuesday, which ended with House Bill 21-76, HS1 being referred to the Senate Fiscal Affairs Committee, chaired by Senate vice president Jude Hofschneider (R-Tinian).

Hofschneider clarified during the session that he supports funding 100% of the retirees’ pensions, and that his proposal to introduce amendments is to recognize the “original commitment during the course of pre-Public Law 18-56.”

Sen. Paul Manglona (Ind-Rota) and Sen. Sixto Igisomar (R-Saipan) both stressed the need to put more teeth into the legislation, for the 25% of the retirees to “not be touched” other than for the pension payment.

Money for senatorial districts

According to Senate President Victor Hocog (R-Rota), both Rota and Tinian were offered $1 million each—out of the $15 million from the collected fee—during the course of negotiation at that time.

“If there was no $2 million back then, then I doubt whether the Saipan exclusive casino will now be in existence,” he added.

At that time, Hocog said, there was no mention that the $2 million earmarked for Rota and Tinian, and the $11 million for Saipan, will continue to serve the payment for the retirees’ 25%.

“The deceased Gov. Inos then have asked the delegation from the respective municipalities if we are willing to…use the $2 million supposedly earmarked for Rota and Tinian, and then each senatorial will address their retirees’ benefit on the 25%,” he said.

It was promised that, until such time that the casino is moving forward and when the revenue from the casino is realized, the $2 million will be restored back for Rota and Tinian and the $11 million for Saipan, he added.

“We have definitely realized a substantial amount of revenue from the casino generation of funds, thereby giving bonuses to our retirees, restoring back the $2 million for our respective municipality, and the $11 million for the third senatorial, [now allowing] the casino revenue to pay 100% of the retirees’ pension. That includes the 25%, plus the payment for the Settlement Fund,” Hocog said.

In support of the amendment

Rep. Teresita Santos (Ind-Rota) backed Hofschneider, saying such an amendment will provide a safety net for the continuity of locally-created and funded programs in the senatorial districts.

The senator stated that the bill, if it not be amended, would remove funding from the casino business gross revenue tax for each senatorial districts to fund locally created programs.

“For Rota, there will be no more appropriations for local employments, interisland medical referral patients and escorts stipends, patients’ subsistence allowance, municipal scholarships, housing allowance for students pursuing higher education, and so forth,” she said.

Santos, however, also stressed that the retirees’ 25% is a pressing matter, adding that the retirees have worked and earned their pensions, and that its provision is constitutionally protected.

The senator, at the end of her statement, expressed hope that, as the CNMI recovers financially, the central government does not forget the money that it owes the senatorial districts.

“Our economic recovery may be gradual as this is a global concern but we should not lose hope. We should continue to work jointly and collectively as this…requires everyone’s cooperation and attention,” she added.

Assurance for the retirees

While he supports the assistance needed by the senatorial districts for local programs, Sen. Vinnie Sablan (Ind-Saipan) is all for the need of the retirees.

“I really feel for our retirees, especially those that are making very little money, not receiving their 25%, and for the family and children that they care for, their obligations. …Not that the programs are less important, but the people and what they need to provide for their families is really a priority,” he said. “My question is, will we receive the full $15 million? What will PSS, through the injunction, ask for? How much will we be required to give them? And will we have enough for the 25% share from the local government? Will it be enough?

Sablan wants assurance from Gov. Ralph DLG Torres that there will be money to cover for the retirees’ pension come August, when the government is to receive money from the island’s lone casino license holder, Imperial Pacific International (CNMI).