Skip to content

Northern Mariana Islands: Where the public pension fund went broke

11/06/2012

In April 2012, the Commonwealth of the Northern Mariana Islands‘ (CNMI) public pension fund declared Chapter 11 bankruptcy, because it was expected to run out of money in 2014.

The retirement fund is a defined benefit type pension plan and was only partially funded by the government, with only $268.4 million in assets and $911 million in liabilities. The plan experienced low investment returns and a benefit structure that had been increased without raises in funding.

Legal experts say this is the first time a retirement fund has declared bankruptcy and could establish a precedent.

The Northern Mariana Islands have a population of 53,883 (2010 census). More than 90% of the population lives on the island of Saipan. Of the fourteen other islands, only two — Tinian and Rota — are inhabited.

* Paradise Lost – Greed, Sex Slavery, Forced Abortions and Right-Wing Moralists

* The Mariana Pension Foreshock

* Retirees may seek to collect $325M judgment

* Pension Bankruptcy in Tiny U.S. Territory Is a Warning of What May Lie Ahead

* Northern Mariana Islands

From → The blog

One Comment

Trackbacks & Pingbacks

  1. On Your Own: How to Manage the Finances of Single Retirement « turcanin. cu ţ.

Comments are closed.

%d bloggers like this: