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10/30/2025 - The Department of Finance has sent demand letters to nine government and autonomous agencies seeking repayment of more than $46 million in deficient employer contributions to the Defined Benefit Plan of the now-defunct Northern Mariana Islands Retirement Fund.
Finance Secretary Tracy B. Norita said the move is in line with Section 8.1 of the 2013 Betty Johnson Settlement Agreement (Civil Case No. 09-000023), which assigned to the CNMI government the Fund's right to collect unpaid employer contributions and related costs.
"Your agency has been identified as having an outstanding balance related to employer contributions not made on behalf of employees," Norita wrote in the letters, warning that failure to remit payment within 30 days could result in "further administrative or legal action to recover the funds owed to the Commonwealth."
Betty Johnson Settlement Agreement is a 2013 class-action settlement in the case of Betty Johnson v. Eloy S. Inos, et al. It resolved a long-running dispute over pension benefits for retirees and beneficiaries of the Commonwealth of the Northern Mariana Islands Retirement Fund.
Topping the list is the Public School System, with a balance of $32,148,684.94, followed by the Northern Marianas College with $6,930,775.13, and the Commonwealth Healthcare Corp. with $5,541,596.47.
Other agencies named in the letters include:
Commonwealth Ports Authority - $855,480.39
Marianas Visitors Authority - $756,304.54
Tinian Casino and Gaming Control Commission - $172,187.44
Commonwealth Economic Development Authority - $154,332.66
Northern Marianas Housing Corp. - $71,814.90
Tinian Mayor's Office - $26,568.36
The Betty Johnson Settlement Agreement was a class-action resolution in 2013 that ended years of litigation over pension payments to CNMI retirees and beneficiaries.
In response to Finance's Oct. 27 letter, Northern Marianas College said the matter was resolved nearly two decades ago and that the college owes no
deficiency.
NMC president Dr. Galvin Deleon Guerrero told Marianas Press that the college had already settled the debt with the central government in 2008, when the liability was formally transferred to—and accepted in writing by—then-governor Benigno R. Fitial.
"It's a matter that has long been settled, and we are more than willing to provide the CNMI Department of Finance the transactional history and documentation to demonstrate this," said Deleon Guerrero. "This liability and the central government's formal assumption of the debt have been known to all parties-including the Retirement Fund, the Settlement Fund, the Office of the Governor, and Finance-for many years."
Deleon Guerrero emphasized that while NMC remains committed to helping the government address its financial challenges, the college must safeguard its fiscal integrity-a principle reflected in its 18 consecutive years of clean audits.
"We will continue to help the central government as we always have and will also maintain our focus on serving NMC students and the broader community," he added.
Education Commissioner Lawrence F. Camacho said PSS and its legal counsel are looking into this matter and are in communication with Finance to gain clarity.
“The Public School System is currently reviewing the letter demand received from the Office of the Secretary of the Department of Finance. We have consistently remitted employer contributions as required; nonetheless, we are carefully reviewing our records as the information and itemized lists referenced date back over a decade. We will collaborate closely with our team, as well as with our counterparts at the CNMI Department of Finance and the Retirement Fund, to ensure clarity and to address our his matter responsibly. Further information will be provided as it becomes available.”
Commonwealth Healthcare Corp. spokesperson Lee Tenorio confirmed receipt of the letter and said CHCC is taking a careful, procedural approach.
"While we take all claims seriously, we must adhere to due process and conduct a thorough review of the circumstances surrounding this matter," Tenorio said. "We are aware that similar letters may have been sent to other agencies, and we will proceed in accordance with our established policies and legal obligations to ensure the matter is handled appropriately."
Report by Mark Rabago
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