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Restored 25% pension for 9 months out Wednesday
Interest on withdrawn DB contributions to be paid next week
Funds from Best Sunshine International Ltd.’s $30-million deposit are expected to hit the accounts of retirees waiting for their 25 percent deferred pension on Wednesday, Gov. Eloy S. Inos and Finance Secretary Larrisa Larson said. The governor said retirees should expect a nine-month payment, covering Oct. 1, 2013 to June 30, 2014. Interest payment on withdrawn defined benefit plan contributions will follow next week.
“It’s a nine-month restoration. At this point, we are going to be doing this thing prospective,” Inos said at a ceremony on Friday to confer an exclusive casino license to Best Sunshine, three days after the actual signing. The $3.14-billion agreement is the single-largest development in the CNMI’s recent history.
Inos said future disbursements of restored 25 pension will be made on a quarterly basis.
The current plan is to issue the 25 percent payments for the July, August, and September 2014 quarter on the first week of October, and so forth.
“Beyond that, as you know, this agreement is for 40 years…$15 million a year, so there is enough. In fact, as we move forward, the amount needed to do the pension would decrease because of the actual nature of the program. People will get out of the system and so less pension would be issued,” he said.
Inos responded to a clarification request from Rep. Anthony Benavente (Ind-Saipan) on Friday.
Larson, meanwhile, issued on Friday afternoon a timeline for payment.
She said funds were transferred from the escrow to Bank of Guam on Friday morning. Thereafter, funds were transferred from Bank of Guam to Bank of Hawaii.
Larson said the NMI Retirement Fund will process the payments.
“Funds are expected to hit retiree accounts Wednesday, Aug. 20,” she said. “DB interest to follow a week thereafter.”
While the 25 percent pension will be processed by NMIRF, the DB interest will be processed by Finance. Larson once again reminded the public to turn in their form W-9 “to prevent delays in payment release.”
The governor also signed on Thursday separate Rota and Tinian local bills each appropriating proceeds from the casino license fee deposit for Rota and Tinian retirees.
Inos signed Rep. Trenton Conner’s (Ind-Tinian) House Local Bill 18-59, Draft 1 into Tinian Local Law 18-9, appropriating $2 million for Tinian retirees, their survivors and other Tinian programs such as for retroactive salary payment and payment of a civil judgment.
The governor also signed Rep. Teresita Santos’ (R-Rota) HLB 18-58, D1 into Rota Local Law 18-15, appropriating $2 million for Rota retirees, survivors, and other programs.
Besides the restoration of pension and payment of DB interests, residents should also expect a total of $10 million in utility vouchers from Best Sunshine within 60 days from the signing of the casino agreement on Aug. 12, or by middle of October.
