Senate passes pension funding bill, says another $1M still needed to make retirees whole

The CNMI Senate unanimously passed House Bill 24-84 last July 20, authorizing the expenditure of $2,105,563 in surplus fiscal year 2025 revenues to help fund the Public School System and continue payments toward the retirees' 25% pension obligation, while acknowledging that roughly another $1 million will still be needed to fully fund the benefit through the end of the fiscal year.

The measure passed on a 6-0 vote, with Sens. Manny Castro, Francisco Q. Cruz, Jude U. Hofschneider, Donald M. Manglona, Paul A. Manglona, and Senate President Karl R. King-Nabors voting in favor. Absent were Sens. Celina R. Babauta, Ronnie M. Calvo, and Corina L. Magofna.

During floor discussion, Senate Standing Committee on Fiscal Affairs chair Hofschneider said the appropriation would provide immediate relief for retirees but would not completely fund the remaining obligation through Sept. 30.

"It would have been even more meaningful if we bring this into full circle and allow it all the way up to the end of the fiscal year," Hofschneider said.

He noted that while the Finance Secretary Tracy Norita certified about $2.1 million in available funds, $500,000 is earmarked for PSS, leaving approximately $1.5 million for retirees.

"The $1.5 million... will take the retirees to make them whole at least for the next month and a half... but I also wanted to advise that they're still short to get you whole up to Sep. 30, 2026, so we are hoping that we can find additional funds," Hofschneider said. "We wanna make sure that we deliver this particular request so that you all can go home with a sigh of relief knowing that we're almost there."

King-Nabors thanked retirees for attending recent meetings with lawmakers and acknowledged the financial hardships many continue to face.

"We do know that times are hard for everybody. Of course, it hits the retirees very differently as many of you don't have another revenue stream to tap into," King-Nabors said.

He added that the Senate still believes the 25% pension obligation should be fully funded and said lawmakers are trying to reconcile differing financial figures.

"It is the Senate's contention and position that this specific activity was adequately funded," King-Nabors said. "We will do our due diligence to try to identify what the gap is... and hopefully we can make whole the 25% and find your $1 million."

The measure now heads to the governor for further action.