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Fund seeks assurance on govt contributions
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Posted on Feb 11 2006
NMI Retirement Fund officials were set to meet with Gov. Benigno R. Fitial late Friday afternoon to obtain assurances that the government would timely and accurately pay its retirement contributions.
“The board wants to make sure that every 15 days, we get the government’s share,” said Fund administrator Karl T. Reyes.
The financial crisis gripping the government has resulted in late payments of its employer contribution to the Fund over the years, the arrears of which now totals over $85 million.
As of early January, the Fund said the government had been four pay periods behind in employer contributions, amounting to some $3 million.
Meantime, Reyes said the Department of Finance had been able to meet the Jan. 15 and 31 pension obligations.
Funding, however, remains inadequate for all other needs.
The Fund received $900,000 from Finance for the Jan. 31 deadline.
The Fund said that during the term of then Gov. Pedro P. Tenorio, the government’s payment agreement with the agency was set at $500,000 every pay period. The Babauta administration increased this to $850,000.
The Fund said that it has to pay $2.3 million in pension obligations per pay period, including an additional $158,333 for 181 new retirees this year.
