In his letter to Senate President Paul A. Manglona, Ind.-Rota, Fund Administrator Richard S. Villagomez said the pension agency, the retirees and the entire CNMI are counting on the Senate’s commitment that it would “dig deep within the budget and increase the [government’s] retirement contribution from $10 million to $25 million or even $30 million.”
Villagomez said it was Manglona who said this “interim solution” could save the Retirement Fund.
Inos told reporters on Friday last week that it was impractical to appropriate more than $10 million for the defined benefit retirement contribution as indicated in the FY 2012 budget bill that is now with the Senate.
Villagomez thanked Manglona for making a commitment to help the Fund.
The Fund administrator said Manglona and House Ways and Means Committee Chairman Ramon S. Basa, Covenant-Saipan, acknowledged “that we are at the end of the line and that the Legislature must take drastic measures to save the Retirement Fund.”
Without that commitment, Villagomez said the commonwealth economy will suffer when the Fund runs out of money.
He said when this happens, pensioners will go without food, shelter and medical care and the CNMI will be “devastated.”
He said responsible governments place their pension obligations first or second in their budgets.
“We urge the Legislature and ask for your help personally, to eliminate waste, terminate non-essential government programs, departments and agencies, and to do all you can to come up with the necessary funds to satisfy the statutorily and constitutionally protected promise that the commonwealth has made to its public servants…and prevent the Retirement Fund from closing its doors in 2015,” Villagomez said.
