Governor, officials hammer out retirement payment plan details
Gov. Pedro P. Tenorio yesterday met with his finance officials and the retirement fund board to finalize details of a payment plan that will settle the government’s $21 million unpaid contribution to the Northern Mariana Islands Retirement Fund.
Since last year, the administration has been in default on its payment to the retirement fund due to financial troubles. Every month, the government has to come up with approximately $850,000 in contribution money against employees’ share of around $280,000.
But NMIRF is worried that the failure of the government to settle portion of its share would make it more difficult to reduce its obligation considering the tight financial situation confronting the Commonwealth.
“We’re working on a solution to start paying our obligation. We will try to pay the retirement fund on an installment basis,” the governor said.
According to Vicente Camacho, NMIRF board chairman, the government’s proposal is likely to be approved by the directors. “The board has not decided on it but most likely we are going to accept it. We understand the situation of the government and we have to work together.”
Camacho said under the payment plan drafted by the governor’s finance officials, the government will try to come up next month with $1.5 million to cover initial payment for its back contribution. The government promised to pay whatever available resources it has in the succeeding months.
There are about 5,000 government employees who are active members of the fund and 1,200 retirees under pension.
