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Settlement Fund’s assets reach $106.3M, up by $1.5M
At the end of January 2014, the Settlement Fund had assets totaling $106.3 million, an increase of $1.5 million from Dec. 31, 2013’s balance.
Settlement Fund investment consultant Maggie Ralbolvsky of Wilshire Consulting disclosed during her presentation in federal court on Monday that investment return was the main driver behind the $1.5 million increase.
Ralbolvsky said the Settlement Fund had a positive return of 1.24 percent in January 2014.
Ralbolvsky also reiterated her previous position that pension obligation bonds for the CNMI will be cost-prohibitive and will not be a viable option.
At the same hearing, Fund trustee Joyce CH. Tang, in her status report on the Settlement Fund, disclosed that the NMI Retirement Fund previously paid Express Electronics over $400,000 for a software that was not delivered.
Tang said the Settlement Fund has commissioned the development of a benefits calculation and audit software program from Wilshire for $150,000 plus $30,000 for training expenses.
Tang said the software program will be able to calculate and audit member’s benefits.
Assistant attorney general Reena Patel said the case against Express Electronics is under litigation in Superior Court.
U.S. District Court for the NMI designated judge Frances Tydingco-Gatewood said the Fund should get back the $400,000 and use the money to pay the retirees.
Patel said the CNMI government has no issue with the recovery of the money from Saipan Electronics.
“We’re just willing to provide assistance,” Patel said.
Attorney Margery Bronster, counsel for Betty Johnson, said that under the settlement agreement, the $400,000 will be assets of the Settlement Fund.
Tang said they will work with the CNMI government to recover the amount from Saipan Electronics.
In April 2012, the Fund filed a lawsuit against Gerhard “Gary” Sword and his company, Express Electronics, for their alleged defective pension software that has already cost the Fund $406,060.
In January 2012, two Fund members—Joaquin Q. Atalig and Jesus I. Taisague—also sued Sword and his company over the same alleged non-functioning software.
