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Gov’t vows to settle retirement obligation
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Posted on Nov 23 1999
Gov. Pedro P. Tenorio welcomed yesterday the decision by the NMI Retirement Fund Board to scrap a recommendation to increase by two percent the government’s contribution for the nearly 5,000-strong public sector employees.
He underscored, however, his efforts to meet the mounting obligations of his administration to the Fund, saying he wants to make sure that it is solvent and that retirees get their pension pay.
“I’m pleased to hear that because sometimes the news media carry and put out misleading information,” Mr. Tenorio told reporters when sought for comment, taking potshots at earlier erroneous reports claiming the Fund would implement the contribution hike before yearend.
According to NMIRF Administrator Juan S. Torres, the board decided to forego the recommendations to implement the hike since it had been mindful of the financial difficulties confronting the Commonwealth.
An actuarial study had proposed to raise the share pitched in by the government to 26 percent from 24 percent to keep the NMIRF financially sound.
The Tenorio administration has lagged behind in remitting its monthly contribution to the Fund. At present, the debt stands at $25 million, but Torres has assured retirees that it has enough money to make annuity payments.
“We want to make sure the Retirement Fund is solvent and the [retirees] will continue to get their benefits,” the governor explained, adding the government will be able to save from the board’s move which it can use for other essential services.
