Retirees running out of time (in more ways than one)

There is ample documented evidence that for more than 10 years there have been many attempts on the part of various administrations and members of the Legislature to degrade and diminish the government’s contractual and constitutional obligation to both its loyal retirees and those active participating members yet to retire.

In some instances they have almost succeeded in eroding the future financial security of retirees, only to be temporarily thwarted by the federal court, at least until 2019 when pensions may be dependent upon CNMI government contributions.

Consider that date as compared to the next election in 2016—a distance of only three years. As a retiree doesn’t that tell you it’s time to get involved and take action?

This group must become an active force in NMI politics and speak with one voice.

I refer, of course, to all retirees, but especially those “on-island” as well as their dependents and friends and in particular those harboring the fear that their long-term financial security is in jeopardy. I refer to those who are aware their pension lifeline may not be available as the future unfolds unless both the administration and the Legislature act now to repair a “broken” and dying retirement system—and not with the usual “cop out” with band-aids. A permanent, long-term fix is necessary and soon—which is already 5 minutes to midnight.

As a retiree, economist and author, I have expressed concern many times in print and email over the deteriorating condition of the future financial security of those retirees dependent solely on a CNMI pension for their livelihood and that of their household members. 

Remember, the CNMI government chose to “opt-out” from participation but has been unusually generous to certain politicians, which was ultimately wrecked by an impeached governor.

As the future unfolds, if the situation is not corrected and soon, the number involved who will likely be potentially financially damaged in varying degrees according to data published in an April 16 Variety article could total in the neighborhood of approximately 2,395 retirees, 590 spouses, and 600 or so surviving children. 

According to a communication from the federal court dated April 15 (regarding Civil Case No. 09-00023), we can anticipate learning the current number of retirees and their dependents along with other demographics of this group from information to be provided in the next quarterly report rendered by the Settlement Trustee. 

Meanwhile, to get to the crux of the matter, in my humble opinion, retirees need to organize and work (emphasis on “work”) on the election of the next governor as well as members of the Legislature who will commit themselves to work together to cooperate and solve the problems facing not only the islands’ growth but also those of retirees and their families.

For too long candidates for office often only give lip service to important matters of concern to retirees and other residents, with the result that real changes in some instances have been long in coming—24-hour islandwide potable water is one example of many others. There is the uncollected outstanding $5 million Judiciary Building loan that should have been paid off in March. The retiree computer software mess is another. A deliverable paid in advance but never delivered. 

And let’s not forget the inexcusable neglect in establishing a long term, sustainable retirement fund for all (that’s ALL) future NMI government employees who certainly deserve an adequate retirement as, for example, that provided U.S. government employees after rendering their service to the community. 

A strong, long-term, sustainable defined benefit (DB) retirement program—one which the retirees had—but lost when their government abandoned the DB plan and replaced it with a defined contribution (DC) plan. A plan far from being an adequate, annuity provided retirement for an island economy. One which is geographically isolated from the myriad of available, alternative and diverse job opportunities to replace one’s lost pension income when it comes to that.

It must be realized, unlike those residing within, say, a continental landmass, people in the NMI can’t just jump in the car and drive to Ohio to seek employment if they lose a dependable source of island income such as their pension. While there are exceptions, however, for the most part usually most residents are confined to the islands’ limited employment opportunities.

Retirees must not forget that the government reneged on adhering to its own Constitution not to diminish the Fund. It is guilty of flagrantly breaking a contract with the retirees—a serious act that calls into question if, indeed, the law has any meaning in the NMI if, or when, a particular issue does not meet the government’s measure of concern—whatever that expediency might happen to be at the time.

If the sanctity of contract can be considered in such a cavalier, disdainful attitude the question must be posed what other NMI contacts might be ignored with impunity as the future unfolds?

Knowledgeable, dynamic leadership is needed to solve the problems facing the NMI’s future as well as those of retirees. 

While I wish to make it abundantly clear to the reader, the individual mentioned below, who is a friend of more than 40 years, is unaware of my suggestion for his gubernatorial consideration—I suggest those retirees “on-island” consider the one man with a proven record of civic concern. A man who is truly a “Mr. Fix-it.” I refer to David M. Sablan, and drafting him for the next governor—or if need be as a ballot “write-in” candidate for chief executive when the time comes.

Think about it. (William H. Stewart, Special to the Saipan Tribune)