Finance Secretary Tracy B. Norita says current funding projections show the CNMI government can continue paying retirees' 25% pension benefit through the July 31 payroll, disputing recent suggestions that sufficient funding already exists to cover the benefit long term.
In a June 12 letter responding to Senate Fiscal Affairs Committee chair Sen. Jude U. Hofschneider, Norita said the administration remains committed to supporting retirees but warned that existing funding sources are expected to run out within the next few pay periods.
"These efforts have resulted in securing the $3.8 million from the Department of the Interior-Office of Insular Affairs (OIA) and we continue to advocate for more funds," Norita wrote.
According to the Finance Department, a total of about $10.06 million has been made available for the 25% pension benefit through a combination of federal assistance, local appropriations, and casino gross revenue tax collections. As of May 31, approximately $7.93 million had already been paid to the NMI Settlement Fund.
"As you can see, the CNMI will only have sufficient funds until July 31 payroll based on our estimates, with only approximately $113.3 thousand remaining for the Aug. 15 payroll," Norita said.
The letter also addresses questions about casino-related funds and reimbursements from the NMI Settlement Fund that Hofschneider has cited in arguing that money is available for the benefit.
Norita said the Department of Finance does not consider a $4.02 million reimbursement from the NMI Settlement Fund to be new revenue that can be used for additional spending.
"The Department of Finance maintains the position that the reimbursement of the Minimum Annual Payment (MAP) from the NMI Settlement Fund in the amount of $4,015,384.56 is not new revenue," she wrote.
The Finance secretary instead urged lawmakers to pass House Bill 24-84, which would appropriate about $1.58 million in lapsed fiscal year 2025 funds for retirees' pension benefits.
"Should this bill pass, it will fund the 25% pension benefits up to September 15, or approximately three pay periods," Norita wrote. "Subsequent payments require additional appropriations."
Norita said the Department of Finance is prepared to meet with Hofschneider and members of the Senate Fiscal Affairs Committee to discuss funding options and provide additional information.
Share this article
