By Emmanuel T. Erediano
[email protected]
Variety News Staff
TO resolve what she described as a “misunderstanding” regarding the funds available for the government retirees’ 25% pension benefit, Finance Secretary Tracy B. Norita on Friday opened the books to show exactly how much funding remains.
She was responding to a statement by Sen. Jude U. Hofschneider, chairman of the Senate Fiscal Affairs Committee, who said last week that roughly $15.7 million remains available for the retirees’ 25% pension benefit.
Norita provided the senator with the latest payment schedule showing how much the CNMI government has received, how much was appropriated from the general fund, how much has been paid since last year, and how much remains available for the Aug. 15 payroll. She also provided copies of financial statements, fund certifications, an audit report, fund account movement records for casino gross revenue taxes, and other documents related to funding for the retirees’ 25% pension benefit.
She further disclosed that, in addition to the $5.17 million appropriated under Public Law 24-20, the fiscal year 2026 budget law, payments to the NMI Settlement Fund were also supported by $3.88 million in Office of Insular Affairs grant assistance and $1 million from the $2.7 million in casino gross revenue taxes collected from Imperial Pacific International in August 2025 under a settlement agreement.
The Finance secretary emphasized that as of May 31, 2026, the CNMI government had paid a total of $7.9 million to the NMI Settlement Fund for the retirees’ 25% pension benefit.
“As you can see, the CNMI will only have sufficient funds through the July 31 payroll based on our estimates, with only approximately $113,300 remaining for the Aug. 15 payroll,” she said.
Norita provided Hofschneider with the following clarifications:
• Casino tax funds
In August 2025, the Commonwealth received $2.7 million under the IPI settlement agreement, which was deposited into the government’s casino gross revenue tax account reserved for the retirees’ 25% pension benefit. In October 2025, approximately $1 million was remitted to the NMI Settlement Fund to cover the Oct. 15 and Oct. 31 payrolls.
Norita said reconciliations and an audit of the casino tax account completed on Nov. 30, 2025, revealed a deficit of approximately $358,000 in the pension-benefit fund, restricting further payments from that funding source. As a result, payments to the NMI Settlement Fund from casino tax revenues ceased after Oct. 31, 2025.
• MAP reimbursement
Norita said the $4 million reimbursement of the minimum annual payment, or MAP, from the NMI Settlement Fund is not new revenue.
She said the funds had already been collected and reported as general fund revenue during the first quarter of fiscal year 2026. The reimbursement merely reverses the expenditure previously made for the MAP and applies the same revenue to another appropriated expense — the retirees’ 25% pension benefit.
To streamline processing and ensure timely payroll payments to retirees, the Department of Finance instructed the NMI Settlement Fund to apply the reimbursement balance directly to the 25% pension payroll costs.
However, Norita said this funding mechanism will be exhausted by the July 15 payroll. As a result, general fund cash collections will be needed to support the July 31 payroll payment.
• Support for House Bill 24-84
Norita recommended passage of House Bill 24-84, which proposes appropriating $2.1 million in fiscal year 2025 lapsed funds identified by Gov. David M. Apatang in his FY 2025 report.
Norita said Finance supports the bill, which also seeks to appropriate $526,390 for the Public School System.
If House Bill 24-84 is enacted, she said, it would fund the retirees’ 25% pension benefit through Sept. 15, covering approximately three pay periods. Additional appropriations would still be required for subsequent payments.
Norita thanked Hofschneider for the opportunity to provide what she described as clear and accurate information. She reiterated that the Department of Finance remains ready to meet with lawmakers to discuss the information provided and explore funding solutions for CNMI retirees and their families.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
