House OKs bill allowing withdrawal of Fund contributions

By a vote of 11-7, the House of Representatives passed last night a contentious bill that allows non-retired members of the NMI Retirement Fund to withdraw their contributions from the pension agency without severance of employment or penalties even as the Fund’s lifespan is expected to last only three years.

House Speaker Eli Cabrera’s (R-Saipan) House Bill 17-266 took morning and afternoon hours to pass as 18 of 20 present members took turns passionately defending their position on the bill.

By 5:30pm, the hours of tension-filled session boiled down to the votes.

The 11 members who voted “yes” on HB 17-266 were Cabrera, Rep. Trenton Conner (R-Tinian), floor leader George Camacho (Ind-Saipan), Rep. Fred Deleon Guerrero (Ind-Saipan), Rep. Sylvester Iguel (Cov-Saipan), vice speaker Felicidad Ogumoro (Cov-Saipan), Rep. Joseph Palacios (R-Saipan), Rep. Ray Palacios (Cov-Saipan), Rep. Teresita Santos (Ind-Rota), Rep. Stanley Torres (Ind-Saipan), and Rep. Edmund Villagomez (Cov-Saipan).

Those who voted “no” were minority leader Joseph Deleon Guerrero (R-Saipan), Rep. Frank Dela Cruz (R-Saipan), Rep. Ralph Demapan (Cov-Saipan), Rep. Janet Maratita (Ind-Saipan), Rep. Tony Sablan (R-Saipan), Rep. Ray Yumul (R-Saipan), and Rep. Ray Tebuteb (R-Saipan).

Absent were Rep. Froilan Tenorio (Cov-Saipan) and Rep. Ray Basa (Cov-Saipan).

Cabrera made a floor amendment to his own bill. The amendment, which was adopted by members, extends from 45 days to 180 calendar days the period when members’ request for withdrawal can be fulfilled.

HB 17-226, House Draft 1 now goes to the Senate.

Dela Cruz, who vehemently opposed the bill, said he hopes the Senate will vote this bill down.

“I believe the legislators who voted ‘yes’ panicked when they heard from the Fund that it only has a three-year lifespan. So they listened to government employees.I think that as lawmakers, we should not panic about this but rather help come up with solutions to prolong the life of the Fund,” he said.

Richard Villagomez, administrator of the Fund, along with some lawmakers, pointed out that the bill does not have a “funding mechanism,” and this will further hasten the demise of the pension agency.

Camacho, for his part, said he voted “yes” because the measure gives members “options”-whether to withdraw their contribution or not. “It’s not mandatory,” he said. “I felt it’s a good bill; it’s not perfect but it gives options.”

Joseph M. Pangelinan, a government employee, submitted 823 signatures to the House leadership, in support of the bill. Pangelinan led the signature drive in support of HB 17-226.

Cabrera said there are some 400 more signatures mostly from Public School System employees that they have yet to receive, bringing the total signatures to over 1,200.

Iguel’s Committee on Health and Welfare had wanted the full body to act on the bill, saying the panel sees both potential benefits and possible adverse effects if the bill is enacted.