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‘Since Day 1, our concern has been finding revenue for retirees’
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Posted on Oct 12 2021
Since the start of his administration, they made it a priority to come up with the $40 million minimum annual payment for retirees and that the whole reason why they passed the casino gaming bill, according to Gov. Ralph DLG Torres last Friday.
When asked for comments during a radio press briefing about Sen. Paul A. Manglona’s (Ind-Rota) concern about finding resources for the retirees, Torres pointed out that at the time when they decided to take on the casino industry, the reason was to provide resources for the retirees. Yet at that time, Manglona opposed the casino industry, Torres said. In response to criticisms at that time, Torres said they urged critics to come up with another industry that will substitute the gaming industry to pay the retirees.
Torres
“We took that initiative. We passed the gaming bill in hopes that if this is successful, this will pay for the retirees,” Torres said.
With the casino industry, through casino licensee Imperial Pacific International (CNMI) LLC, the government managed to pay the retirees in the last several years, the governor said.
Noting that finding resources for the retirees has always been their concern, Torres asked Manglona what his solution is, now that the Commonwealth Casino Commission is seeking to revoke IPI’s gaming license.
At a recent Senate session, Manglona said the CCC’s move to revoke IPI’s casino license is concerning as this means the government will struggle starting next year with paying the $40 million minimum annual payment to the NMI Settlement Fund.
The senator said the CNMI may be fortunate this year to have the American Rescue Plan Act money to subsidize government operations across the board, but it appears the CNMI maybe going back in the coming years to when it was plagued with lack of revenues.
The Settlement Fund is obligated to pay CNMI retirees 75% of their benefit payments. The government has the discretion but is not obligated to cover the remaining 25% balance.
Settlement Fund trustee Joyce C.H. Tang has repeatedly praised the dedication of the Torres-Palacios administration for finding ways to continue to make the government’s 25% contribution even in these challenging times.
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