Inos, yesterday told reporters that the different scenarios presented by Buck Consultants on Tuesday should be reviewed.
He said he met with the consultant and officials of the Retirement Fund to discuss different ways to prolong the life of the retirement program.
What Buck Consultants presented, Inos said, were general recommendations. No specific measure was mentioned regarding which benefit can be taken out and how.
Inos noted that there are two types of benefits — one is constitutionally required and the other, statutory.
Buck Consultants’ principal Dylan Porter discussed with the administration and lawmakers six scenarios that will help save the Retirement Fund.
These include a remittance of $48.9 million from the government to the Fund; a $50 million employer contribution from the government; the elimination of COLA and future disability benefits on top of a $42 million government contribution; 10 percent across-the-board cut in benefits along with COLA and disability benefits; a 25 percent across-the-board cut in benefits and $25.7 million government contribution along with COLA and disability benefits cut; and a 50 percent across-the-board cut plus a $9 million government contribution.
Inos said the administration is looking at other ways to save the retirement program.
They are looking at the possibility of transitioning the retirement system into the U.S. Social Security system.
He said they considered this idea back in 2006 and 2007.
“We are looking at various ways to save the system,” he added.
Floating a pension obligation bond, he said, is another route to help the retirement program stay afloat.
Voters last year rejected a bond proposal for the Fund.
“We would have to bring it back to the voters,” Inos said.
Variety learned that Gov. Benigno R. Fitial met with Buck Consultants and Retirement Fund officials yesterday afternoon.
Press Secretary Angel A. Demapan said “a wealth of information” was presented to the governor and lt. governor.
However, he added, the administration is not in a position to make any commitment at this point.
The governor and the lt. governor will thoroughly review the information before they will make any determination, Demapan said.
The CNMI government now owes the Retirement Fund $320 million.
