By William H. Stewart
\nSpecial to the Saipan Tribune<\/p>\n
Second of two parts<\/p>\n
I think it is now abundantly clear that the central government has no intention of paying the hundreds of millions of dollars it owes to the retiree\u2019s pension fund. There doesn\u2019t even appear to be a good faith attempt to work out an acceptable solution to repay the amount in arrears by making serial payments to the Fund with penalties for not adhering to an agreed repayment schedule on time. Therefore, it would appear that options are extremely limited to one of the following:<\/p>\n
(1) Bring suit to force the government to comply with its obligation and \u201cearmark\u201d money from its general fund to retire its debit to the members. This possibility is interesting in that many, if not all, the judges on the Superior and Supreme Courts are themselves paying into the Retirement Fund and therefore are probably biased and would recuse themselves. It\u2019s understandable. Given this peculiar situation, perhaps the case could then be heard in the federal court. No doubt many members also believe that for the Fund trustees, \u201cit\u2019s time to fish or cut bait\u201d and go to court. Enough time has past with no tangible results. Or\u2014<\/p>\n
(2) Continue with the status quo and pretend that somehow it will all work out and that the money will be available from some as yet unidentified source when it\u2019s needed. This appears to be the current mindset and perhaps even a wishful prayer within the central government. This is known as the \u201cHW-MT\u201d formula or \u201cHand Wringing & Muddle Through\u201d formula.<\/p>\n
One is reminded of the old proverb, \u201cIf wishes were horses, beggars might ride.\u201d Some sage once observed that long-range planning (as in the case of the well-being of the Retirement Fund) does not deal with future decisions, but with the future of present decisions.<\/p>\n
If you think the above is a pessimistic outlook\u2014wait until it comes to pass. Which it will in due time unless something isn\u2019t done to correct the situation.<\/p>\n
By not contributing its matching share to the employees\u2019 payroll assessment, which over the years has accumulated a total deficit in the Fund amounting to hundreds of millions of dollars, the CNMI government was able to divert this money for many other uses, perhaps even for use in obtaining Department of the Interior infrastructure grants by using the money as the required \u201cmatching\u201d (dollar for dollar) amount needed for Federal financial participation. This may have been illegal, depending on how it was done and thus the reason that perhaps a federal grand jury (and not the internal auditor) should examine the matter.<\/p>\n
An investigation will determine if any federal law has been broken\u2014if not directly by wire\u2014then perhaps by the illegal diversion of retirement funds for other purposes, perhaps even commingling with federal funds previously allocated and appropriated by Congress or the CNMI Legislature for other purposes.<\/p>\n
Of course, it is beyond my scope of knowledge to evaluate whether there might possibly be an illegal issue in using money that should have been transferred to the retirement account but instead was used to satisfy Interior\u2019s infrastructure matching requirement\u2014or even whether the \u201csource and application\u201d of funds makes any difference to Interior officials. Match or no match, Interior officials should know Cheop\u2019s Law, \u201cNothing ever gets built on schedule and within budget.\u201d<\/p>\n
My personal opinion is that if it turns out funds that should have gone into the retirement account were diverted to match Interior\u2019s infrastructure grants, then it was wrong and Interior should have \u201cblown the whistle\u201d if it knew\u2014or even suspected that it might have been the case and refused to consider such money as being a valid contribution for their matching requirement. At the very least the General Accounting Office should look into the matter.<\/p>\n
So, where does it leave the retirees? Those reaching advance age who have worked for the NMI government should not have to contend with the aggravation of an indifferent central government that won\u2019t pay is debt\u2014or even acknowledged it as far as I am aware. It just isn\u2019t right and people deserve better from past and present administrations.<\/p>\n
You might wonder what one person can do? Recognize that there is strength in numbers. Contact your elected officials and Fund trustees: Let them know what you would like done\u2014it\u2019s very much the American way. They are your servants; you are not their\u2019s.<\/p>\n
(William H. Stewart is an economist, historian, and military cartographer.)<\/p>\n","protected":false},"excerpt":{"rendered":"
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