“We haven’t looked at it yet. We’re still studying the proposal,” said Aguon.
Fund Board Chairman Juan Guerrero recently suggested the agency consider CUC for its future investments.
The House of Representatives and the Senate held a joint meeting to discuss the proposal and came up with the conclusion that certain conditions must be put in place before they endorse the move.
The assets of CUC are just a third of its liabilities, which are estimated to be over $219 million.
CUC generates much of its income from its production of electricity on the islands but its antiquated facilities and soaring fuel prices are making a huge dent on its annual budget.
The Fund is also problematic with its finances as the cash-strapped government’s unfunded liabilities and unremitted employer’s contributions continue to balloon.
Members of the Retirement Fund board of trustees participated in the regional Institutional Funds Management Country Conferences late last month that the Asia Pacific Association for Fiduciary Studies partly sponsored.
Aguon said the conference should remind board members that their responsibilities come with liabilities, thus, every decision that the body makes should be well thought of.
“Every board member should know what their responsibilities are especially the liabilities they could face in making wrong decisions,” he said.
“They must learn how to protect themselves. This is essential, I think to any new trustee, regardless of how many terms you served. It’s always good to know how to protect yourself and your decisions,” he added.
The board governs the Retirement Fund, an autonomous government agency in charge of the pension benefits of public servants.
