In an interview yesterday, the governor said what he is seeking is a mediation to ensure that all parties are satisfied based on their current situation.
“I am in favor of a settlement that will involve mediators. Hopefully from the Ninth Circuit panel of mediators,” he said.
The U.S. Court of Appeals for the Ninth Circuit’s mediators apparently don’t charge for its services.
“It’s pretty much free. The only thing is the out-of-pocket costs. You know, bringing them here. The room and board. Those are the only costs. And it’s not going to be dragged. If for example, the court rules in favor of the Fund, I have no choice but to appeal — $213 million, I cannot find that anywhere,” the governor said.
The government’s budget for fiscal year 2009 is $148 million.
The Retirement Fund won its lawsuit against the central government in Superior Court by default.
Next month, the court will decide how much and how the government must pay its arrears which included an unfunded liability estimated at $549 million.
“I am confident that Judge [Kenneth] Govendo prefers that we get together and solve this thing through mediation,” said the governor.
In a separate interview, Speaker Arnold I. Palacios, R-Saipan, said the governor asked them to help seek mediation with the Fund.
He said he will consult with the other members of the House of Representatives before making any commitment.
The House Ways and Means Committee already drafted an omnibus bill that will reform the local pension system.
The bill, which is still being reviewed by the counsels of the Fund, the House and the administration, seeks to reduce the unfunded benefits of retirees.
More rules will also be imposed on how they could get their benefits.
