The NMI Retirement Fund\u2019s long-term viability was put into doubt in 2011 following revelations by the pension agency\u2019s actuary and investment consultants that its lifespan is projected to last only up to three years. <\/p>\n
The Fund, along with panicked retirees, blamed the program\u2019s main sponsor\u2014the central government\u2014for failing to remit its contribution for years, seriously affecting the agency\u2019s capability to pay its pensioners. <\/p>\n
Despite court orders, board resolutions, and ultimatums to allow the Fund to recover monies owed it, nothing was done to avert the near collapse of the pension plan.<\/p>\n
The Fund also took further blows this year from harmful bills introduced by the Legislature, foremost of which was the Beneficiaries Derivative Act, which allows members to take legal action on behalf of the trust. <\/p>\n
As a result, the pension agency lost its then-newly hired investment consultant, Wilshire Associates, actuarial consultant Buck Consultants, and all its money managers because of litigation fears. <\/p>\n
The Fund first wanted to challenge the new law, but later reconsidered after members of the Legislature promise to amend it. To date, the repealer bill has yet to be enacted, resulting in the continuous liquidation of the Fund\u2019s assets until a new investment consultant is hired to guide them in the international market. <\/p>\n
The Fund\u2019s current portfolio is pegged at only $261 million, but the pension agency disclosed that only $161 million can actually be invested in the market after the court ordered it to set aside $100 million for its active members\u2019 contribution. <\/p>\n
With the continuous drawdown to pay the monthly pension and benefits of members, the portfolio is projected to further dip resulting in an even higher unfunded liability.<\/p>\n","protected":false},"excerpt":{"rendered":"
The NMI Retirement Fund\u2019s long-term viability was put into doubt in 2011 following revelations by the pension agency\u2019s actuary and investment consultants that its lifespan is projected to last only up to three years. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-157759","post","type-post","status-publish","format-standard","hentry","category-local-news"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/157759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=157759"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/157759\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=157759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=157759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=157759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}