GOVERNOR David M. Apatang, Finance Secretary Tracy B. Norita, Marianas Public Land Trust Chairman Philip Mendiola-Long and MPLT Attorney Robert T. Torres on Friday signed a promissory note for the $29 million loan dedicated to the payment of retirees’ pension.
The loan agreement was a condition set by the bicameral budget committee before it could act on the governor’s revised budget proposal appropriating $144.3 million for fiscal year 2026. Of the $144.3 million, $7.2 million is allocated for the payment of group health and life insurance for the retirees.
The $29 million loan, with 7.5% annual interest, may be used only as permitted for the NMI Settlement Fund obligation for FY2026, according to the loan agreement.
The NMI government agrees to repay the outstanding balance of the loan over a minimum of seven years or 84 months.
The agreement also requires that all interests be calculated based upon actual days elapsed and the full amount loaned and outstanding. It also stipulates that payments must be made by offsetting funds available from distributable interest income due to the general trust fund.
The NMI government also agrees to pay for attorney fees and cost of suit if a judicial action is filed to collect the amount owed to MPLT or for breach of the agreement terms.
Insurance coverage funding
Also on Monday, the House of Representatives unanimously passed House Bill 24-75 to allow the Department of Finance to tap the $3.7 million for continued payment of group health and life insurance employer premiums for retirees.
Authored by Rep. Blas Jonathan Attao and introduced by the entire House as a committee of the whole, the bill authorizes the finance department to allot $2.8 million for the retirees’ group health and life insurance coverage and $936,896 for the Public School System.
In a statement on Friday, the NMI Settlement Fund said the passage of H.B. 24-75 will leave the unfunded balance at $4.4 million. The $2.8 million is not enough to cover the full cost of the retirees’ health insurance for FY2026, the Fund said.
Without a revised budget to fully fund the retirees’ insurance coverage, and the clarification of the duration of coverage covered by the $2.8 million, the Fund said, the risk of default and termination of the Aetna International Inc. “is almost certain.”
Also, the Fund reiterated that it was informed by the NMI government that there is no funding for the 25% of retirees’ pension beyond Dec. 31, 2025. This means, the Fund said, that the 25% payment from the NMI government will cease on Jan. 1, 2026.
By Emmanuel T. Erediano Variety News Staff
