Fund, DoF at impasse on proportionate pensions

No agreement was reached yesterday among members of the House of Representatives’ special committee, NMI Retirement Fund, and the Department of Finance on a bill that would allow the Fund to pay new retirees less than their full pension.

During the two-hour meeting at the House’s chamber, members of the House’s special committee raised their concerns about the bill, while the Retirement Fund’s board of trustees also registered their concerns about their fiduciary duty.

The Fund’s board also noted, among other things, that they keep withdrawing funds to pay for pensions, but not much is going back.

Except for Rep. Ralph Anthony Torres, who is off-island, all special committee members attended the meeting. Finance Secretary Eloy Inos, Fund board chair Juan T. Guerrero, Fund administrator Mark Aguon, and Fund board members were also present.

Special committee head Vice Speaker Joseph Deleon Guerrero told Saipan Tribune yesterday that, although no concrete decision was made, the Fund officials intimated that they want to discuss the issue during their board meeting Thursday next week.

Deleon Guerrero said Fund officials are going to call in their experts or consultants to discuss the concerns that were raised in yesterday’s meeting.

“We will be meeting, I believe, Friday next week after the board meeting. And hopefully then we can come with some kind of agreement,” the vice speaker said.

He said they are trying to look for ways on how they can allow Fund members to receive their full pension benefits while at the same time making sure the Fund is also paid.

Deleon Guerrero said they want to ensure that the employer retirement contributions for applicants who want to retire are also paid.

“We did not reach an agreement. But I think we are now looking for the mechanisms—whether legislative or other alternatives—where we can satisfy the concerns, both on the part of the pensioners and on the part of the program,” he said.

Senate Bill 16-36 proposes to amend Public Law 15-61, which specifically prohibits the Fund from applying the proportionate pension scheme.

The bill was referred to the House, which deliberated on the floor but did not reach a consensus to either pass, kill, or amend it.

This prompted House Speaker Arnold Palacios to create the special committee headed by Deleon Guerrero. The members include Reps. Oscar Babauta, Justo Quitugua, Heinz Hofschneider, and Ralph Torres.

The special committee was given 15 days to report back to the House.