Skip to comments.(Northern Marianas Retirement)Fund files for Chapter 11 Bankruptcy - (And so, it Begins)
Posted on 04/17/2012 1:12:08 PM PDT by tcrlaf
The NMI Retirement Fund, through its administrator Richard A. Villagomez, filed for Chapter 11 bankruptcy yesterday afternoon.
The lawyer said the Fund's payment of benefits to beneficiaries and operating expenses have averaged approximately $77.9 million per year in the last three years.
In contrast, he said, during those same years, the Fund's funding-consisting of employee contributions, returns on investments, and employer contributions-has averaged approximately $30.9 million per year.
As a result of such continuous underfunding, which necessitated withdrawing from its portfolio to cover funding shortfalls, the value of the [Fund's] assets has fallen from $353,475,412 in 2009 to its current level of $268,448,997.84, Huesman said.
The Fund, he added, is subject to liabilities (both current and actuarial) totaling about $911 million.
(Excerpt) Read more at saipantribune.com ...
"What the fund would like to do is cut the amount it pays to current retirees by 58%."
"The Fund's bankruptcy filing is a culmination of years of the Northern Marianas government's failure to fully pay its employer share of retirement contributions, which led the Fund to sue in 2006.
The lawsuit resulted in a $231 million judgment in favor of the Fund in 2009, but that obligation remained unpaid and has now ballooned to $325 million, according to the court filing by the Fund's trustee."
Coming SOON to a jurisdiction near you.
Governments cannot keep paying outrageous retirements, no matter what was previously promised. These public-Private retirement funds are going to be the first to go.
And when they do even Obama's Army of Purple Shirts, as well armed as the military, will be unable to stop the insurrection.
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And when they do even Obama’s Army of Purple Shirts... will be unable to stop the insurrection.
Isn’t it the SEIU deadasses THEMSELVES, whose pensions would be affected by this?
It happens first to the little guys and it is like a bomb going off...when the inevitable happens here it will be like thermonuclear devices going off all around the country.
And they think that the Trayvon Martin mobs were politically dangerous to those firmly entrenched in their phoney-baloney jobs [high offices].
It’s a shame that actuarial science hasn’t been invented or this could have been avoided.
It will but they do not have the intelligence to figure it out. Their hatered, envy of others, and infatuation of obama has affected their ability to reason.
NMI agreed to retirement after 20 years of public service. Wonder why they are broke.
The recipients would never admit that anything too good to be true is.
Sucks no one cares.
Go pay your taxes. Government retirees need the money. :)
........................The lawsuit resulted in a $231 million judgment in favor of the Fund in 2009, but that obligation remained unpaid and has now ballooned to $325 million, according to the court filing by the Fund’s trustee.” ...............................
So, in other words, the Northern Marianas government to broke and should be in chapter 11.
Just like our states are broke, and the federal government is broke.
Sounds like it’s time for the Mooch and daughters, and “close” friends, with mother and 50 SS detail to take a vacation to the Marianas to prop up the tourist economy by mega millions of our cash!