THE Department of Finance has remitted $5.2 million to the NMI Settlement Fund for the payment of the retirees’ 25% retirement benefit, Gov. Arnold I. Palacios said.
According to Public Law 23-18, the funding source is the dividend collected by the Commonwealth Economic Development Authority from the Commonwealth Utilities Corp.
The law allows the 25% benefit payment to last through Aug. 31, 2024.
The governor, who was in Hawaii to attend the U.S. Indo-Pacific Command change of command ceremony on Friday, said Finance’s certification of funds that were transferred to the Settlement Fund “restores” the retirees’ 25% benefit payment.
In a statement he issued on Thursday, the governor said he wanted “to assure retirees that funds will be used for its intended purpose.”
“The Administration has been unwavering in its commitment to continue the 25% payments to the retirees despite the fiscal challenges that we face as a Commonwealth,” he said.
“Lt. Gov. [David M.] Apatang and I thank the members of the Legislature for passing legislation that ensures the payments of the 25% continue,” he added.
“Our retirees are some of the most vulnerable in our Commonwealth, and to many of them, the pension payment represents a lifeline, providing essential support for daily expenses, healthcare needs, and maintaining a decent and dignified standard of living,” the governor said.
“Although we have reached a solution for now, the challenge to sustain the payments past the end of the fiscal year continues. Lt. Governor Apatang and I will continue to work with the Legislature to help safeguard our retirees’ benefits and give them the peace of mind and financial security they deserve,” Palacios added.
The 25% benefit is not required by the 2013 agreement approved by the federal court to settle a lawsuit filed by a retiree against the CNMI government for its failure to make required payments to the NMI Retirement Fund.
But since the administration of the late Gov. Eloy S. Inos, the CNMI government has been voluntarily paying the 25% benefit, which costs about $13 million a year.
