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Fitial sets meeting on pension fund woes
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Posted on Jan 28 2009
Gov. Benigno R. Fitial will meet with lawmakers and officials of the NMI Retirement Fund next week to address the pension program’s depleting resources.
Fund board chair Juan T. Guerrero earlier said the pension program may be wiped out in three to five years if the government’s $209 million debt remains unpaid and the global financial crisis continues.
Press Secretary Charles Reyes said yesterday the governor looks forward to addressing these issues collaboratively.
“He supports a number of legislative reforms endorsed by the Fund, some of which have already been introduced in the Legislature,” said Reyes.
In fiscal year 2007, the Fund spent $76.894 million, including over $51 million in pensions; $5 million to survivors of retirees; $1.9 million in disability benefits and $4.451 in administrative costs.
The governor has expressed support for an initiative to issue a pension obligation bond to help stabilize the Fund’s financial health.
The Retirement Fund’s other proposed solutions are the passage of bills and initiatives shielding the Fund from political tampering to ensure its continued viability; prohibit the Legislature from increasing benefits until all obligations of the Fund have been fully paid; limit the class of people able to double dip; and allow the Fund to file for bankruptcy.
The Fund also proposes statutory amendments, including a stop on all disability benefits, and soft freeze on benefits accrual at 20 years.
