Gov. Eloy S. Inos has a piece of advice for the over 1,700 individuals that have withdrawn over $40 million in their defined benefit plan employee contributions from the NMI Retirement Fund: Spend it wisely and invest it on your retirement.
He hopes that those who have withdrawn their retirement money would put them in a 401(k) or any individual retirement account or IRA.
This is the same advice that other government officials, the Saipan Chamber of Commerce, and even members who have withdrawn their DB employer contributions have given. They hope that members would not use all the money for purchases such as new cars, new houses, or off-island trips.
Yesterday marked the second day for members to pick up their checks or receive direct deposits from the Fund.
“My advice is not to plan on spending all that money one time, that they save for the rainy days, [or when] they’re old. I suggest that they receive that money but maybe start getting into other types of investment. Don’t spend it all because the time will come when they cannot be employed anymore because of natural process of aging and stuff like that I recommend that they exercise care in the use of the funds and put some for the future,” Inos said in a news briefing.
He added that the process for allowing eligible defined contribution plan members to withdraw their DC contributions has also started.
Inos said there’s about 400 DC plan members who have so far applied to withdraw their contributions.
Just the same, he hopes that these DC plan members—just like the DB plan members—will set aside the money for their retirement years.