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Fund: Investment monies withdrawn total $247.5M
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Posted on Feb 06 2012
By Moneth Deposa
Reporter
Reporter
Total withdrawals from the NMI Retirement Fund’s investment monies has totaled $247.5 million in the last eight years or from fiscal years 2005 through first quarter of the current fiscal year.
This amount is expected to significantly increase toward the end of fiscal year 2012 where so far $17.7 million in withdrawals were recorded since December 2011.
Based on the records submitted to the Legislature by Fund officials during a recent legislative meeting, the agency reported that it was in 2005 when the agency made a withdrawal of $4.5 million from the investment fund to pay for the members’ pension and benefits.
In fiscal year 2006, the drawdown increased to $18 million and further ballooned in the following year to $33.5 million. Still due to not enough contributions received by the agency, withdrawals continued to climb to $36.8 million and $43 million in fiscal years 2008 and 2009, respectively.
Fund records also showed that total withdrawals in fiscal year 2010 amounted to $40.8 million. In the following fiscal year, the Fund registered a 30-percent increase in drawdown with $53.2 million recorded in FY 2011.
Since the beginning of fiscal year 2012 in October last year, the agency reported that it already withdrew $17.7 million as of December-which resulted in total drawdown of $247.5 million to date.
To illustrate the current fiscal condition and viability of the pension agency, Fund officials also reported the following portfolio amounts of the pension program.
From the same period in eight fiscal years, or from FY 2005 through first quarter of FY 2012, the following are the estimated value of the fund: 2005 ($426.83 million); 2006 ($458.9 million); 2007 ($483.9 million); 2008 ($383 million); 2009 ($333.7 million); 2010 ($313.75 million); and 2011 ($267 million). This first quarter of the fiscal year 2012, the Fund meantime recorded $253.9 million estimated value of its portfolio.
In the same presentation they made to lawmakers, the Fund reiterated the critical state of the agency if no positive actions and solutions are identified to stop the “bleeding” of its investment fund.
