By Emmanuel T. Erediano
[email protected]
Variety News Staff
THE NMI Settlement Fund on Tuesday issued a notice informing government retirees that after July 31, 2026, they will no longer receive 25% of their pension benefits.
According to Finance Secretary Tracy B. Norita, the remaining balance for retirees’ 25% in the current fiscal year budget “will be insufficient to fully cover the Aug. 15, 2026 benefit payment.”
Payment history schedules indicate that the Finance Department has been making payments of up to $496,000 per pay period for the retirees’ 25% pension share. For each of the June 30, July 15, and July 31, 2026 pay periods, $489,000 payments are scheduled.
However, for the Aug. 15 pay period, only $121,387 is available for the retirees’ 25%.
In her letter to NMI Settlement Fund Trustee Joyce Tang, Norita said based on recent financial reviews and expenditure analyses of historical payments, the remaining balance will be insufficient to fully cover the Aug. 15, 2026 benefit payment.
The shortfall, she said, “underscores the need for early communication and coordination to ensure retirees plan for the discontinuance of this pension benefit, especially those whose life or health insurance premium payments are at risk.”
In its Tuesday notice, the NMI Settlement Fund noted that it is not required to pay the 25% under the Consent Decree in the class action lawsuit against the CNMI government.
The notice also referenced House Bill 24-84, which remained pending in the Senate Fiscal Affairs Committee as of Wednesday. The measure proposes allocating $2.1 million from the fiscal year 2025 budget surplus to continue funding the retirees’ 25%.
Authored by Rep. Blas Jonathan Attao, the bill states that in the FY 2025 annual report, Gov. David M. Apatang reported that after accounting for debt service and earmarked funds, total resources appropriated under Public Law 24-01 amounted to $133,516,276. Total general fund expenditures for the fiscal year totaled $131.4 million, resulting in a surplus of $2,105,563, according to the measure.
In a statement on Wednesday, Attao said the bill has been pending in the Senate since January.
“We respectfully urge the Senate to take prompt action and pass House Bill 24-84 without further delay. Timely passage of this legislation will provide much-needed certainty and peace of mind to our retirees, who have earned these benefits through their commitment and service to our government and communities. They should not be left to wonder whether the retirement security they depend upon will be diminished,” he said.
“We also respectfully call upon the Senate to approve the appropriation of more than half a million dollars for the Public School System to ensure that our students, educators, and schools receive the resources necessary to continue providing quality education throughout the Commonwealth.
“Our retirees, our students, and our families deserve decisive leadership and timely action. We encourage the Senate to move this important legislation forward for the benefit of the people of the Northern Mariana Islands and the future of our Commonwealth.”
Budget deliberations
In an interview Tuesday, Senate Floor Leader Donald Manglona, who also serves as vice chair of the Senate Fiscal Affairs Committee, said the issue must be addressed during budget deliberations for FY 2027.
He noted that the administration is already proposing a 40-hour pay period for government employees and said it is “inevitable” that funding the retirees’ 25% may not be possible without new revenue streams. However, he said senators have discussed with Finance Secretary Norita and Special Assistant for Budget and Management Vicky Villagomez the possibility of pursuing federal disaster-related assistance similar to what the CNMI received after Super Typhoon Yutu, including a Community Disaster Loan that provided $88 million to help sustain government operations.
Manglona said officials have again raised the possibility of seeking similar assistance to help support operations and personnel in FY 2027, including payments for retirees’ 25%.
He added that the retirees’ 25% remains one of the Senate’s top priorities during budget deliberations, and that lawmakers have previously structured spending provisions to ensure that any excess funds are directed toward the benefit.
‘What can we do?’
Two retirees who saw the Fund’s notice expressed similar reactions Tuesday.
Juan M. Sablan, former president of the Commonwealth Retirees’ Association, and Mario Taitano, a current member of the CRA board, both asked, “What can we do?” when asked for comment.
Sablan noted that “the economy is bad, no tourists are coming, and everybody’s suffering.” Because of this, he said, the administration and Legislature should reduce spending by “eliminating deadwood” across departments and agencies, including independent boards and commissions.
He said everyone in government should share the burden, not just retirees. “Everybody must carry the burden, not only us,” he said.
Taitano said, “I guess we just have to face the reality of the limited fund.” If retirees no longer receive the 25%, he said, they will have to cut back on spending and limit driving to save on gasoline.
He added that he hopes former Gov. Ralph DLG Torres will return to office, saying he believes Torres has a good relationship with President Donald Trump and could raise awareness of the CNMI’s financial challenges.
The other candidates for governor are Rep. Blas Jonathan Attao and former Education Commissioner Lawrence F. Camacho.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
