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Fund group drafts omnibus bill to address pension woes
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Posted on Mar 02 2009
The newly formed NMIRF Working Group is drafting an omnibus bill to help stabilize the finances of the NMI Retirement Fund for future retirees and current pensioners.
“The idea is to combine a lot of the bills introduced instead of having piecemeal bills to address Retirement Fund matters. Hopefully this bill can address financial and policy issues related to the Fund,” working group first vice chair Sen. Jude U. Hofschneider told Saipan Tribune.
The group held its second meeting Wednesday last week, and will meet again tomorrow when the draft will be up for review.
Among the measures proposed in the Legislature are the issuance of pension obligation bonds to help stabilize the Fund’s financial health, and shielding the Fund from political tampering. Other piecemeal measures include prohibiting the Legislature from increasing benefits until all obligations of the Fund have been fully paid; limiting the class of people able to double dip; allowing the Fund to file for bankruptcy; and ceasing all disability benefits and a soft freeze on benefits accrual at 20 years.
The working group currently has 13 members led by chair Rep. Ray N. Yumul, and six technical, statistics and legal support staff.
The other members are Sen. Jude U. Hofschneider, first vice chairman; Commonwealth Development Authority executive director Oscar C. Camacho, second vice chairman; Fund board of trustees chair Juan T. Guerrero; NMIRF board member Sixto K. Igisomar; Teresa Kim and press secretary Charles P. Reyes Jr. of the Executive Branch; Sen. Joseph Mendiola; Rep. Ralph DLG. Torres; Lilian M. Pangelinan of the Department of Commerce; Kelly M. Butcher of the Public School System; and retirees Rose L. Igitol and Ron Barrineau.
The Retirement Fund earlier said 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.
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.
