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House OKs Social Security bill
By a vote of 14-3 and after lengthy discussion, the House of Representatives passed late afternoon yesterday a Fitial administration-drafted bill “expressing the desire” of the CNMI to transfer active government employees to the U.S. Social Security program.
House Bill 17-312 is on its way to the Senate.
Senate President Paul Manglona (Ind-Rota) said last night that the bill will be referred to the Special Committee on Retirement Fund issues chaired by Sen. Jovita Taimanao (Ind-Rota).
“It will be up to the committee what to recommend or do with it. But I don’t see any major debate on that bill,” Manglona told Saipan Tribune.
The Fitial administration’s plan is to implement the Social Security program effective Oct. 1, 2012.
Rep. Frank Dela Cruz (R-Saipan), Rep. Trenton Conner (R-Tinian), and House minority leader Joe Deleon Guerrero (R-Saipan) were the only ones who voted “no” to the bill.
Dela Cruz said the government didn’t even ask or survey employees whether they want to move to the U.S. Social Security system, while Deleon Guerrero said the bill has the effect of “forcing” people to go into Social Security despite a contractual obligation under the Fund’s plans. Dela Cruz hopes lawmakers won’t regret passing the bill.
Three members were absent, including Rep. Stanley Torres (Ind-Saipan) who left the House chamber long before the voting on the bill came. Speaker Eli Cabrera (R-Saipan) and Rep. Froilan Tenorio (Cov-Saipan) were off-island.
The 14 others voted “yes,” including acting House Speaker Felicidad Ogumoro (Cov-Saipan), the main author of the bill.
Gov. Benigno R. Fitial, a day before leaving for a two-week official trip to the U.S., urged the Legislature to swiftly pass the bill which he said will effectively transfer members of the Fund’s defined benefit and defined contribution plans to the U.S. Social Security program.
Ogumoro, during the House session, urged her colleagues to vote favorably so that the Fitial administration’s plan to prolong the lifespan of the Fund will move forward.
The fiscal year 2013 budget is also premised on the transitioning into the U.S. Social Security system by Oct. 1, 2012, the start of fiscal year 2013.
Ogumoro said that acting governor Eloy S. Inos will meet with lawmakers next week to discuss the second piece of legislation that the administration is proposing. The governor said that bill would “reform” the retirement fund plan “to protect the benefits of our retirees and to effectively transfer our active employees to the Social Security program.”
The NMI Retirement Fund is under a state of emergency, but the Senate adopted a resolution amending the executive order on the Fund emergency. The House has since been sitting on the Senate resolution.
