The former senator, who is running for governor, said the administration and lawmakers are “covering their ass.”
The Fund won its lawsuit against the central government early this year by default, and the court will soon decide the payment terms.
“They are the problem and now they are pointing a finger that we are the problem,” Guerrero said, referring to the administration and the Legislature.
“I believe that the Fund should continue the lawsuit. Any mediation or settlement agreement has to be supervised by the court. To withdraw or stop the law proceeding — I don’t think it’s in the best interest of the Fund,” he added.
During yesterday’s board meeting, some retirees expressed their doubt that the cash-strapped CNMI government would pay the pension agency without a court order.
Guerrero agreed.
“The Retirement Fund will have to live with the court ruling,” he said.
“If the court says the Retirement Fund is owed just $213 million that would be the number that we will settle. Anything else is [not] in the best interest of the Fund. The government knew that it owes the Fund. For them to be screaming bloody wolf that ‘we cannot afford’ — they should have thought about that years ago,” the Fund chairman added.
Board Vice Chairman Pedro Dela Cruz, said the central government “created the problem.”
“What we’re trying to do is to fix the problem,” he said.
Guerrero said the Legislature should be blamed for passing unfunded legislation.
“I am not blaming just the administration. In some ways, the Legislature is also at fault because they have been complacent in their work. They allowed the changes. They appropriated money but nobody was fiscally responsible. They should be blamed also,” he said.
“For them to turn around and say ‘we need to listen to the administration.’ I say we’re ready to listen. We’ve been listening and yet they haven’t done their part. What has the Legislature done to rectify this other than [reducing the employer’s contribution] and they are still barely meeting their obligations.”
