The Superior Court already ruled the Fund is owed by the central government of the CNMI more than $231 million in arrears.
The autonomous agencies’ arrears were not accounted in the judgment.
According to David Demapan, the comptroller of the Fund, the current principal CNMI central government’s unpaid employer contributions have jumped to over $159 million from over $149 million in FY 2008 or an increase of $9.8 million.
Autonomous agencies, on the other hand, owe the pension agency over $20 million—up by 32 percent from $15 million in FY 2008.
For the month ending June 30, 2009, the total revenues of the Fund reached $19.4 million— 19 percent short compared to a year ago’s record of $24 million.
Demapan made the report during the pension agency’s meeting yesterday.
Demapan said also noted that the Fund secured $2 million in total revenues as far as its investment activities are concerned for the period.
He said the Fund saved about 9 percent in June because its expenses totaled only $5.5 million versus its operating budget of $6.1 million.
Demapan said the board authorized a $45 million drawdown from the Fund’s investment this FY 2009. Last month, the Fund withdrew over $4 million to finance its various obligations to retirees.
“Based on the trend analysis, we expect to save $1.4 million from the draw down authorization of $45 million at the end of the fiscal year,” he said.
Debt service payment
Demapan said the investment statement for the month ending June 30, 2009 were not available but the investment performance through May 31, 2009 showed the market value of the investment as over $309 million.
“Through May 31, 2009, the investment performance reported a loss of $41.9 million. Majority of the loss came from the realize loss of $34 million and unrealized loss of $13.9 million,” Demapan said.
He also said the Retirement Fund continues to receive consistent monthly debt service payment from its four local investment interest which reached to $1.9 million as of June 30, 2009, the financial report of NMI Retirement Fund showed.
Except for the Member Home Loan program, the Retirement Fund continues to get payments from its investment in Group Health Insurance Program, Commonwealth government Employees’ Credit Union and Judicial Building Loan.
The Fund secured $706,318.17 collections from the member home loan borrowers, which $344,210.74 of the total collections was applied to the principal, and $362,107.43 was recognized as interest income.
Demapan reported $135,000 collection from CGECU and $1,064,205 from Judicial Building Loan receivable.
“Because our investment interest with the CGECU is at risk, I will continue to monitor the financial performance of CGECU and report to you on a quarterly basis,” Demapan told the board presided by Juan Guerrero.
