Retirees threaten court action over pension cuts

Commonwealth Retirees Association president Juan Iguel Tenorio says retirees are preparing a petition and may take the CNMI government to court over the loss of their additional 25% pension benefit, questioning why the fiscal year 2027 budget provides more funding for Corrections while retirees face a reduction in their income.

Tenorio told Marianas Press that he plans to take the retirees’ concerns directly to Gov. David M. Apatang and gather signatures from association members for a petition.

“We are filing a petition and we might just take the governor to court,” Tenorio said.

Tenorio, who worked for the CNMI government for 38 years, said retirees paid into the system throughout their government service and should be given greater consideration as the Commonwealth struggles with limited financial resources.

“It is very unfortunate that the retirees will have to really suffer, you know, because of lack of money, we understand that,” Tenorio said. “But in our belief, all the retirees, me, for example, I worked for the government for 38 years and I paid my dues, just like all other retirees.”

He was particularly critical of funding provided to the Department of Corrections while money is unavailable to continue the retirees’ additional 25% benefit.

“Why would they give them more money? I'm not saying don't give them money, but give them after you gave us,” Tenorio said.

Tenorio referred to inmates as “criminals” during the interview and questioned why government resources are being spent on their housing, food, and other needs while retirees are losing part of their pension payments.

“We are first, we are due diligence in paying our taxes for more than 30 years,” he said.

Tenorio said he intends to speak directly with Apatang about the issue.

Asked what the association’s next move would be, Tenorio said retirees have already discussed their options and are moving toward a petition and possible legal action.

The Department of Finance, meanwhile, has announced that sufficient funding was not identified in the fiscal year 2027 budget to make the scheduled 25% pension payment on Oct. 15.

Finance said funding for subsequent 25% payments is also unavailable following the cessation of the benefit after Sept. 30.

The department warned that retirees may consequently have insufficient pension benefits to cover obligations such as health and life insurance premiums and Member Home Loan payments. Those obligations would have to be paid directly to the Group Health Life Insurance Trust Fund or the Northern Mariana Islands Retirement Fund.

Finance said it will continue working with the Governor’s Office, Office of Management and Budget, and the Legislature if funding sources become available.

The latest development follows months of appeals by retirees to preserve the additional pension benefit.

At a July 15 town hall meeting at the Garapan Roundhouse, retirees described the financial difficulties they would face if the additional 25% payment disappeared. Tenorio and association members subsequently appealed to lawmakers to find funding to continue the benefit.

Tenorio said the latest budget situation has now pushed the association to consider stronger action, including a petition and a possible court challenge.