Bill seeks to increase retirees’ share of casino license funds
A bill has been introduced seeking to increase the retirees’ share of the funds coming from casino license payments.
House Bill 19-21, introduced by Rep. Blas Jonathan T. Attao (Ind-Saipan), notes that because of the settlement fund agreement, retirees lost 25 percent of their pensions.
“Because of this and the continued increase in prices for basic commodities many residents found it extremely difficult to make ends meet.”
H.B. 19-21 seeks to amend Public Law 18-56, which states that funds collected from the gaming license fees shall be used to address the retirement pension reduction.
Despite the enactment of PL 18-56, only a portion of the license fee was allocated for the payment of the 25 percent reduction in pension, the bill notes.
The law mandates a yearly $15-million license fee from the exclusive casino license holder.
The bill noted, however, that this annual license fee collection is short of what is actually needed to address the pension reduction, which is estimated to cost $17 million.
Despite this fact, only a portion (around $10 million) of the annual license fee is dedicated to address the pension reduction issue.
H.B. 19-21 intends to amend PL 18-56 “to dedicate the entire license fee collections for the payment of retirees’ pension reduction.”
Commenting on H.B. 19-21, Attao said one of his considerations in introducing the bill is the fact that “retirees continue to struggle financially.”
Attao hopes the bill gets passed before Best Sunshine International Ltd., the exclusive casino license holder on Saipan, gives its next round of payment so that the $15 million payment will be given entirely to retirees’ funds.
Attao said he expects that “not all will be pleased with the bill,” but it will still aim to make sure that retirees get their benefits in full.
The fact is that so many of the retirees are receiving an immense amount of money that is much more than the average annual wage of high paid current Govt. Dept heads.
AS now many workers are in the SSA system and at retirement time may be able to get only up to $1200 a month in SS benefits.
What is going to happen at this time? Especially when the cost of Medicare will be taken out of this small income? (about $285 month)
What is going to happen when the total retirement fund collapses in a coupe of years, leaving nothing?
What is going to happen in the fifth year when their is no payment from “Sunshine”? (if they are still around)
What is going to happen when Sunshine finds out that this venture is not profitable and does not continue with it’s grandiose plans?
They will either leave completely or just stick with their 50 room and/or 200 room scaled down hotel Casino.
Al of this putting all one’s eggs in one ‘broken’ basket with no plans for any real economic advancement.