CNMI bankruptcy petition stuns contributors

There has been anger and panic following a bankruptcy petition filed for the Northern Marianas Islands Retirement Fund.

The CNMI's pension programme has been on the verge of collapse and has been projected to last only to about 2014 if no solution is identified.

Our correspondent, Mark Rabago, says the chapter 11 bankruptcy petition is intended to re-organise the fund so it can better function, and to extend the life of the fund.

However, he says the filing came as a surprise to members of the fund.

"Your reaction is shock, because you've been saving money, hoping that your nest egg will be there when you retire and suddenly you woke up the next day and you see the news that it has filed for bankruptcy without knowing that bankruptcy is actually meant to extend the life of the NMI retirement fund instead of seeing it die in the next three years."

Mark Rabago.

The Fund also filed several motions, including a request for entry of order providing for the continued payment of certain benefits to certain retirees of the government, their survivors and certain disabled persons.

Next story in Pacific: Risk of flood damage to Fiji's seed sugar cane