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Sunday, April 20, 2014

Names sought for potential Fund receiver

U. S. District Court designated-judge Frances M. Tydingco-Gatewood wants all parties to submit recommendations for the possible appointment of a permanent receiver for the NMI Retirement Fund.

Tydingco-Gatewood issued the order yesterday in response to a motion filed by the Fund early this week to name the current trustee ad litem, Joseph Razzano, as permanent receiver. The motion will be heard on Jan. 15, 2013.

The court ordered all parties to submit by Dec. 27 three names of qualified receivers and their curriculum vitae, in the event the court decides to make the appointment.

Tydingo-Gatewood said the recommended individuals should be willing to serve immediately and will accept and assume authority as receiver over the pension agency.

In a separate order yesterday, the judge also sought responses to an emergency motion filed by the Fund proposing the release of refunds only to members who are compliant with their contributions. Responses should be filed today, Dec. 14, before 5pm.

The Fund will be allowed a reply to these responses no later than Dec. 17 at 8am. The judge indicated that the court will then issue a decision.

The Fund, through counsels Braddock Huesman and Daniel Berman, filed Wednesday an emergency motion asking that the trustee ad litem be allowed to disburse refund checks only to members who are updated with their contributions to the Fund.

A total of 1,745 members have applied to withdraw their employee contributions from the Fund. Only 93 have so far received their refund checks.

Based on documents filed in court, it was disclosed that eight of the 93 disbursed checks are for employees of the Public School System, which still owes $256,000 in employee contributions for fiscal year 2012 following the payment of $1.1 million on Nov. 29.

Because the government—through PSS—has failed to remit 100 percent of all DB plan employees’ contributions, and because employee contributions are considered funds held in trust for a particular employee, the Fund said it cannot disburse 100 percent of employee contributions.

The Fund, in its latest emergency motion, said that non-compliant employer members’ applications cannot be approved unless and until the government remits 100 percent of employees’ contributions. Calculation of interest will be determined at a later date.

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