The chair of the board of the Commonwealth of the Northern Marianas' Retirement Fund, Joseph Reyes, says it's filed a lawsuit against the government in the local court rather than in the U.S. District Court.
The suit is for non payment of the government's dues to the Fund, totalling 120 million US dollars.
Mr Reyes says the board had been advised against taking the case to the Superior Court, because it is a local matter.
The Northern Marianas' judiciary is also behind in its payments to the Fund.
The suit comes after the government suspended employer contributions to the retirement programme.
The Fund is also opposed to a government proposal that it provide a loan of 40 million dollars for the struggling Commonwealth Utilities Corporation, the territory's power supplier.
The Saipan Tribune reports Mr Reyes as saying a local court action will make it easier for retirees and members of the Fund to file complaints.
