DB members told to fill out form for release of interest payments

In anticipation of the release of $30 million in escrow once a Saipan casino license is granted to Best Sunshine International Ltd., the Department of Finance is now asking government employees waiting for interest payments on their withdrawn NMI Retirement Fund’s Defined Benefit Plan contributions to fill out a tax form, or Form W-9.

The $30 million is also the source of payments for retirees’ deferred 25-percent pension, estimated at $16.4 million.

Finance Secretary Larrisa Larson confirmed yesterday that they released a memorandum on Friday “in anticipation of release of interest to DB members.”

“Need to ensure their tax filings are correct and trying to be ready when it is time to release payments. Announcements about retirees will be forthcoming,” Larson told Saipan Tribune.

The Lottery Commission approved Wednesday a casino development agreement, which will become final once Best Sunshine’s Hong Kong-based parent company, Imperial Pacific, approves it.

The Lottery Commission expects to hear back from Imperial Pacific as early as this week. The deal calls for the development of a minimum $2 billion investment in an integrated casino resort with at least 2,000 new hotel rooms.

In a one-page memorandum dated Aug. 8, Larson said it is critical that a Form W-9 is filled out and submitted to the Division of Finance and Accounting Payroll Section “as soon as possible.”

“Please be advised that delays in submission of this form will result in a delay in release of your interest,” Larson said in her memo addressed to all government departments and agencies.

A copy of the form is available online at http://www.irs.gov/pub/irs-pdf/fw9.pdf.

In October last year, over 1,700 individuals withdrew over $40 million in their DB plan employee contributions from the NMI Retirement Fund.

Tinian, Rota retirees

Sen. Frank Borja (Ind-Tinian), chairman of the Tinian and Aguiguan Legislative Delegation, said Friday that they have gotten from retirement settlement fund trustee Civille & Tang an “estimate” breakdown of the $2.95 million meant for “off-island” retirees.

Borja said about $221,000 of the $2.95 million is for retirees from Tinian that are now off-island.

This is in addition to the $1.05 million meant for Tinian retirees in the CNMI, for a total of $1.271 million for Tinian retirees.

The Tinian delegation asked for the specific breakdown that will help them appropriate $2 million for Tinian retirees and other activities. The Rota Legislative Delegation also prepared a similar bill.

Borja said the Tinian delegation moved its Friday session to today to further discuss the appropriations bill.

Civille & Tang earlier told the governor and lawmakers that an estimated $16.4 million is needed to fund retirees’ 25-percent deferred pension payments for fiscal year 2014.

An estimated $11.05 million of this is for Saipan residents or retirees, while $1.35 million is for Rota residents and $1.05 million is for Tinian residents. The remaining $2.95 million is for off-island residents or retirees.