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EXTRA BENEFITS TO BOARD MEMBERS NMIRF asks Teno to ax bill
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Posted on Jun 22 2000
Northern Marianas Retirement Fund Administrator Juan S. Torres has asked Gov. Pedro P. Tenorio’s not to sign a proposed measure that will provide one year vested service credit in the NMIRF for every two years of service on CNMI boards, commissions and municipal councils.
In a letter to the governor, Mr. Torres said Senate Bill 12-40 failed to identify adequate source of funding to pay for the improvement in pension benefits. The bill is now back in the Senate for action on the House amendment to the proposed measure.
The bill does not specify how the annuity level will be determined knowing that, by law, members of the boards or commissions are not compensated. Secondly, there is no provision which identifies any funding source to pay for the proposed improvement in benefits.
Absence of such language may be deemed unconstitutional because monies paid out of current members’ account may be construed as an impairment of their accrued benefits. “Simply stated, the Fund cannot afford to be saddled with additional financial burden without having someone to pay for it,” he said.
Amid the recession besetting the CNMI, the Retirement Fund is now faced with unprecedented challenges from the introduction of over half a dozen pieces of legislation which mandated the improvement in current pension benefits.
While the enactment of SB 12-40 into law will benefit him personally as board of trustee member of Marianas Public Land Trust, Mr. Torres said it is however, his fiduciary responsibility as the Fund’s secondary caretaker “to try to desist or speak out against any attempts, which I believe may erode its financial integrity.”
Mr. Tenorio said he shares and recognizes the Legislature’s concern and commitment in looking out for the best interest of their constituents saying that the proposed legislation is one way of showing appreciation to a group of dedicated public servants who not only work long hours but are also subject to public scrutiny and criticism.
