NMIRF okays $44.2-M budget for FY2001
The Northern Marianas Retirement Fund board has approved a $44.2 million budget for fiscal year 2001, the bulk of which will be used to pay pension of its members, according to Administrator Juan S. Torres.
NMIRF has allotted $38.1 million for pension benefits refunds, $1.2 million for administration and $2.1 million for professional fees.
With Asia showing signs of recovery, the board has already informed the Fund’ s money managers about plans to invest more money in the region. But implementation of such plan will all depend on when the government will settle its back contribution to the retirement office.
With the signing of the $30 million loan agreement between the CNMI government and the Bank of Guam, the Retirement Fund is optimistic that it will be able to collect partial payment for its unpaid employer’s contribution to the Fund.
NMIRF hopes to have its offices in Rota and Tinian constructed next year but the implementation of such plan will all depend on the availability of funds.
The board chairman has expressed satisfaction over last year’s performance of the Fund’s off-island portfolio which earned $57.4 million in the last quarter of 1999.
This brings to $390.55 million the total assets of the Fund managed by its nine money managers. Based on the Fund’s investment report for the month of December alone, the off-island portfolio reported a gain of $28.89 million.
Breakdown of the Fund’s assets is as follows: 72.5 percent in equities, 22 percent in fixed income and 5.30 percent in cash and cash equivalents.
Although its overseas investments have shown significant increase in earnings, Mr. Torres has expressed concern on the cash flow situation of the agency which may hamper its operations.
The Fund needs $3.2 million every month to manage the contributions of the 5,000-strong government workforce. Of this, some $2.7 million goes to pensions of government employees while the rest are spent on salaries and administrative expenses. The Fund’s total revenue covering the contribution of members and employers amounts to $1.44 million every month.
