A thousand days left for the Fund?

A prediction was publicly reported that the life of the Retirement Fund’s pension program “may be cut short within about three years if the current situation does not improve.” Joseph N. Camacho, House Floor Leader, was quoted as saying that the Retirement Fund is facing imminent danger. This is a result of two reasons: the government’s failure to meet it legal obligation in making payments of millions of dollars it owes to the Fund and the negative impact on Fund investments resulting from the decline in the stock market—both of which have had a devastating effect on the future financial security of retirees.

Assuming the period of three years is a close estimate, it’s only about a thousand days from now if the forecast is reasonably accurate. That’s about as close to us in time as Governor Fitial’s last election is distant. Not a very long time from the present.

If you’re a retiree don’t expect the Feds to bail your pension out—the federal government is running out of money as it spends to keep the country out of an economic depression. Besides, the U.S. government doesn’t owe Commonwealth pensioners anything, especially since the NMI hasn’t contributed a penny to the U.S. Treasury.

To be a retiree and have your pension dry up is bad enough but to have your life insurance and group medical plan evaporate along with it should be another level of serious concern. If there’s no pension payment from which to have the monthly group life insurance premiums automatically deducted from one’s pension—or for participation in the Fund’s privately arranged volunteer health and medical insurance program—that elevates the situation to another level “beyond the pale,” with extremely serious consequences for all retirees and their families.

It also means that all the money collected from retirees over the years during which they participated in making premium payments for life insurance will be lost. Future payments for monthly premiums will have to be made individually from financial sources other than one’s pension and it’s unlikely that everyone will be able to benefit from lower prices resulting from group offerings.

Afterward, for those able to purchase life insurance on their own outside the reduced cost of group offered plans, the price on an individual basis will be huge, even if a company will provide coverage. And there is no guarantee they will. The same is true of health and medical insurance coverage and, even then, if you have a pre-existing medical condition you may not be able to purchase coverage at any price.

Not withstanding the recent losses in the stock market which few could have foreseen in advance, one wonders what administration officials have been thinking to let the resource base of the Fund deteriorate to the extent it has. It’s a callous disregard lacking foresight and concern for the health and welfare of those dependent upon their pension.

Depending upon one’s age and the private plan selected, the cost of medical and health coverage can run as high as $600 or $700 per month in the United States. Policies are probably less expensive in the Philippines but would Commonwealth or Guam health providers honor them? More often than not, such insurance will not cover pre-existing illness such as diabetes.

We know from CNMI health authorities that within the general population 1 in 5 people suffer from diabetes and I assume this ratio holds true for the retirees. Many others have a variety of other different medical problems requiring frequent medical attention. But don’t take my word for it; ask a professional at CHC.

If you have diabetes, high blood pressure, a heart condition, ulcers, tuberculosis, epilepsy, emphysema, kidney problems, cancer, high cholesterol (LDL), glaucoma, HIV, Lupus Vulgaris, Lytigo and Bodig, Alzheimers, Parkinson, Hansen, IBS or one of the numerous other illnesses, you probably won’t be able to purchase medical insurance to cover your existing condition at a cost you can afford. The bad news will be left to the insurance companies to tell you. Seems to me there might be a whole lot of people in that group. Just make certain that your illnesses are confined to only a common head cold. Then you’ll be alright.

With respect to the ineligibility of medical coverage for, say, a prostrate condition, which is quite common among men of retirement age, I’m curious as to whether this condition would be among the classification of SAT (Sorry About That). Probably so.

The clock is ticking and if you are a concerned retiree ask your elected representative what are the plans to deal with the crisis and demand specific answers. Failure to pose such a question can indicate a lack of interest and concern on your part and, if you aren’t interested, how can you expect your representative to be?

Historian Thomas Carlyle observed, “ It is one of life’s illusions, that the present hour is not the critical, decisive time.” An interesting observation. The present hour is very critical and a worst-case scenario contingency plan should be worked out and quick.

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