Governor Arnold I. Palacios announced that if a bill appropriating $5.2 million in federally collected dividends is not passed by the Senate by April 15, 2024, the government will reduce pension benefits to 25% of all government retirees. announced that it would suspend voluntary payments. Such payments will be made by the Economic Development Agency of the Commonwealth Utilities Corp.
But Palacios said in an interview Wednesday that he was confident the Senate would act on the bill. Because when the Senate recently met to discuss the 25% pension payment, Senate President Edith E. Deleon Guerrero (D-Saipan) said: Senator Paul A. Mangrogna (Rota, India), Senator Corina L. Magovna (Saipan, India), Senator Selina R. Babauta (D-Saipan), and Senator Jude U. Hofschneider (D-Saipan). The Republican Party (Tinian) was in attendance.
“So I understand and appreciate that most, if not all, senators also understand the urgency of this if we continue to respond to the 25%. ” he said, adding that he expects the Senate to do so. We will act promptly based on the law.
On March 28 of last year, the House fast-tracked the passage of House Bill 23-104, House Draft 1, a bill introduced on the same day by Congressman Jonathan T. Atao (Saipan, India).
Shortly before the bill was given a unanimous vote, Atao said that unless Congress acts on the bill, 25% of retirees’ pensions will be reduced, if not suspended, by April 15, 2024. said.
Atao said the House and Senate recently met with the administration and were informed of the CNMI’s difficult financial situation.
He said much of the 25% pension for retirees was paid using the government’s rescheduling powers, but unfortunately that fund was being depleted.
Since 2014, the CNMI Government has paid 75% of the minimum annual payment plus a 25% discretionary benefit to the NMI Settlement Fund pursuant to a settlement agreement for a class action lawsuit against the NMI Retirement Fund and the CNMI Government .
Palacios said in an interview Wednesday that Atao’s bill is a solution but not a permanent one.
In a recent leadership meeting with some members of the House of Representatives and the Senate, Palacios revealed some of the issues facing the government, one of which is the possibility of suspending 25% pension payments for retirees. He said that.
The governor said the 25% payment is not legally required.
He said he also discussed reviewing all government departments to reduce staff costs, as well as expenses, and what would be needed to reduce across-the-board government departments.
Mr. Palacios said Mr. Atao is very concerned about retirees in particular and to his credit, at least 25% of the time until the end of this financial year so that retirees are taken care of for the next five years. He said he has come up with a solution to address pension issues. 6 months.
He said Atao’s bill is not a permanent solution, but something that will have to be considered whenever revenue or financial resources are not available.
Palacios said the administration remains committed to funding for the 25% and will continue to do so.
He said that because we were talking about savings of $12.5 million to $13 million over 18 months, it would have been most expedient to cut the pension by 25% of that.
Palacios and Lt. Gov. David M. Apatan said their hearts go out to those who have retired, especially those who cannot return to work. This is because they are basically on a fixed income, which puts a lot of pressure on them.
He said he wholeheartedly supports the initiatives presented by Mr. Atao.
“If anything, we’ll see, at least through the fiscal year, what direction the economy is going to go in the next fiscal year. But his concerns are everyone’s concerns. We’ll look at it,” the governor said. Told.
If something doesn’t happen soon, Palacios actually has a final draft of a letter to NMI Settlement Fund Trustee Joyce C.H. Tan, who will likely pay 25% if the bill doesn’t pass. He revealed that he told them that he would not be able to do so.
“I don’t think we will be able to raise the funds. Therefore, we [going to] “We’ll probably have to pause on April 30th or May 1st,” he said.
Palacios said he was ready to send an initial letter to Trustee Chan, but put the letter on hold once the House offered a solution through Atao’s bill.
He said that, unfortunately, he would then have to write to Mr Chan informing him that if nothing happened between now and April 15, he would suspend the 25% payment.
Palacios said the $5.2 million would allow the administration to pay 25% of the pensions by at least the end of August or September.
The Governor can, hopefully now, reconsider some of the bills that are already in the Senate for revenue purposes, or other members of the House can add to that to generate revenue in this economy. He said he would be able to come up with some initiatives.
Palacios said the government is doing its best to ensure that all tax collections proceed.
He also said that they are ensuring that all infrastructure projects can move forward quickly and generate associated revenue.
The governor said he hoped the Beach Road project would be completed several years ago, but it was never actually completed because they only started working on it last year.
Palacios also noted that infrastructure and activities from all Community Development Block Grant disaster recovery projects and other disaster projects, including those for Northern Mariana University, will have an impact on the economy.
Palacios said Tinian’s infrastructure projects will likely begin to bear fruit in the near future.
“Therefore, we expect these activities to generate revenue and the situation to start stabilizing,” he said.