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Gov’t. seeks refund of NMIRF contributions • Move aimed at reducing $21 million in unsettled obligation
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Posted on May 18 1999
In a bid to bring down the government’s growing unpaid contributions to the Northern Mariana Islands Retirement Fund, the Tenorio administration will seek a reimbursement of its share to employees who have resigned from public office.
According to well-placed sources from the administration, Gov. Pedro P. Tenorio will request the Retirement Fund for a recomputation of its obligation to the agency to include the share the government had paid for its workers who have withdrawn their membership from the NMIRF.
“The administration feels that there is a need to come up with a new computation because a lot of employees have pulled out their contributions from the retirement fund. This means the government is entitled to collect back the share it paid for these employees,” a ranking administration official said, without giving figures.
Since last year the government has been behind in its payment to NMRIF due to serious financial woes, but has started this month settling its unpaid account that has accumulated to $21 million.
Some $1.7 million have been turned over to the Retirement Fund coffers, but officials said the amount is not enough to even offset the government’s share for May.
Every month the government has to come up with approximately $850,000 million to cover the employer share for close to 5,000 workers under its payroll, while the NMIRF spends some $2.3 million to pay the benefits of its members.
Because of the growing unpaid back contribution of the Commonwealth, the Retirement is planning to liquidate portion of its assets to boost its cash capital amid mounting concerns of some 1,200 retirees of not receiving their pension on time.
