A deliberate injury

To date, many retirees would approach me in our community for many of them are still wondering and asking questions what had happened to our NMI Retirement Fund? How did it get so messed up? Who messed it up? For the benefit of other retirees who may have the same questions and wondering, my answer was because of Public Law 15-15. You may read this public law at http://www.cnmileg.gov.mp/documents/laws/public/15/PL15-015.pdf.

There are other contributing factors caused by poor and self-serving decisions of our past and present elected leaders that deliberately injured the NMI Retirement Fund. But Public Law 15-15 was the major culprit that broke the “camel’s back” sending the Fund to the Intensive Care Unit. Eulogio Inos and Betty Johnson decided to harvest the Fund’s vital organs (cash assets) to create their own Frankenstein monster (Betty Johnson Settlement Fund) that spooked thousands of retirees to accept a 25-percent diminution of their pension.

The Legislature was advised by the Fund’s money manager that even though the government is unable to remit 100 percent of its employer’s contribution to the Fund, a less than 100 percent remittance consistently remitting to the Fund is much better than 0 percent remittance. The 15th Legislature decided not to follow the experts’ advice and they went ahead to introduce House Bill 15-137, which eventually became Public Law 15-15. This public law authorized “the Commonwealth government to suspend the government obligations (employer contributions) owing to the Northern Mariana Islands Retirement Fund for the remainder of fiscal year 2006 and fiscal year 2007 and for other purposes.”

House Bill 15-137 was introduced on June 12, 2006, by former representatives Oscar M. Babauta, Justo S. Quitugua, Jesus SN. Lizama and incumbent Ray N. Yumul. The bill was passed on its first and final reading the same day, June 12, 2006. The Senate passed the bill on its final reading on June 15, 2006 (only three days after the House passed it). The then-governor Fitial signed and approved House Bill 15-137 on June 16, 2006 (only one day after the Senate passed it), which became P.L. 15-15. This is how negligent these elected leaders are that resulted in the suffering of all retirees to date. A fast-tracked House bill!

Some of these legislators who were in the 15th Legislature will again be asking for our votes in the upcoming November 2014 general election. Oscar M. Babauta, Arnold I. Palacios, and Jude U. Hofschneider (incumbent lieutenant governor) have expressed their intention to run again as GOP Senate candidates. Francisco S. Dela Cruz (incumbent) and Joseph P. Deleon Guerrero (incumbent) are again running as independent candidates for the House of Representatives. There are rumors circulating that Ray N. Yumul (incumbent senator) will be the running mate for Heinz Hofschneider.

The poor and self-serving decision of the above list of individuals who introduced House Bill 15-137 and voted on the bill gave the Fund no choice but to withdraw the required amount from its portfolio to meet its pension obligation to retirees. Withdrawing from the Fund’s portfolio reduced the portfolio from a healthy $400 million to a sickly $130 million. If not for Public Law 15-15 and if the government continued to remit its employer’s contribution to the Fund, retirees would not have been subjected to a 25-percent reduction in their pension.

Jesus I. Taisague
Koblerville, Saipan