“We believe that this is a win-win situation not just for the Tinian casino and gaming commission but for all municipal employees who desperately need to withdraw their contributions,” Tinian Mayor Ramon M. Dela Cruz said in a letter to commission chairman Francisco M. Borja.
The mayor has asked his acting chief executive office Kimberlyn King-Hinds to take the lead role in negotiating an equitable payment plan with the Retirement Fund.
The municipality owes the Fund $1.6 million.
Paying this debt will allow eligible gaming commissioners and other municipal employees to retire.
Dela Cruz said it was agreed during the Aug. 13 Tinian leadership meeting that King-Hinds will negotiate with the Retirement Fund in consultation with Borja.
The mayor said the enactment of the fiscal year 2011 local budget will include a payment of $15,000 per month to the Retirement Fund.
This payment plan will begin on Jan. 1, 2011 while the eligible commission members and staff will retire at the end of the fiscal year on Sept. 30, 2010.
The realized savings from the retired employees will be amortized and allocated to the Retirement Fund to pay $85,881 in employer’s contributions before the first quarter of fiscal year 2011.
The mayor said Tinian will pass a local budget with language to ensure timely and full payments to the Retirement Fund.
Tinian is willing to sign a memorandum of agreement with the Retirement Fund, the mayor said.
Since Tinian municipal government has no money to immediately pay the contributions to Fund, Dela Cruz said they should be creative in finding a solution that is “fair to all employees that are affected.”
His proposal has already been submitted to Retirement Fund.
“We hope that this proposal is amenable and we look forward to a continued positive dialogue with you to resolve this serious situation,” the mayor said in his letter to Borja.
