The NMI Retirement Fund\u2019s board approved Friday the distribution of some $120,698 in annual retirement bonus to retirees and members, not as cost-of-living allowance as previously allowed under the law.<\/p>\n
Board chair Sixto Igisomar told Saipan Tribune that the annual retirement bonus has no compounding effect, unlike COLA, which increases the base benefit checks of retirees.<\/p>\n
Igisomar said the $120,698 will be taken from the appropriation made by the Legislature for fiscal year 2011. <\/p>\n
According to the Fund\u2019s legal counsel, Carolyn Kern, some payments have already been made for fiscal year 2011 and one more payment remains to be sent out.<\/p>\n
Igisomar explained that based on a newly enacted law, the board now has the authority to decide whether it will provide COLA or bonus every year. This, he said, is contrary to the Fund\u2019s original proposal to eliminate the two.<\/p>\n
\u201cThat\u2019s what we initially requested\u2014to remove it. But they [lawmakers] came back to us telling us \u2018it\u2019s up to you\u2019 to decide between COLA and bonus. Our intention is to repeal the law because the only time we can provide additional benefits is when we are comfortably funded. Otherwise, we\u2019re not being fiscally responsible,\u201d he added.<\/p>\n
Igisomar pointed out that the only time the Fund can provide additional benefits is when the pension plan\u2019s funding level is at 80 percent to 100 percent. The Fund\u2019s $264 million portfolio represents about 40-percent funding level.<\/p>\n
\u201cWhatever you call it\u2014COLA or bonus\u2014we are trying to stay away from it because the only time we will be heading toward COLA or bonus is if we actually hit the 80- to 100-percent funding level and we\u2019re not,\u201d he told Saipan Tribune.<\/p>\n
[B]MPLT lease proposal[\/B]<\/p>\n
The board on Friday also approved the proposed lease agreement with the Marianas Public Land Trust, which wants to occupy a portion of the Retirement Fund building. Fund administrator Richard Villagomez reported that MPLT responded to the RFP issued by the agency after the relocation of Public School System in August.<\/p>\n
It was reported that MPLT wants to lease a small area on the second floor and the agency has agreed to go up to $1 per square foot in rent. The amount is a slight increase over the Fund\u2019s proposed 75 cents per square foot.<\/p>\n
Board trustees instructed the management to make sure that MPLT will have a separate meter for its utilities and a security deposit.<\/p>\n
Kern said that MPLT plans to move in by Dec. 1 and she has been authorized by the board to work out the details of the proposed lease agreement for the board\u2019s final approval.<\/p>\n","protected":false},"excerpt":{"rendered":"
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