1 · The promise
In 2013, a federal court approved a settlement in Betty Johnson v. Eloy S. Inos, Case No. 09-00023. Retirees had sued because the Government had not paid what it owed into the Retirement Fund for years, and the Fund was running out of money.
The settlement created the NMI Settlement Fund, which took over certain Retirement Fund assets. Its job is to make sure every Settlement Class Member receives at least 75% of their Full Benefits.
2 · Where the 75% comes from
The Settlement Fund pays the guaranteed 75% from its own assets and from payments the settlement requires the NMI Government to make every year.
That required payment peaked at $45 million in FY 2018 and has fallen each year since, to $29 million in FY 2026. The Fund's status report for FY 2026 references a loan from MPLT.
3 · Where the 25% came from
The settlement guarantees 75%. The remaining 25% was paid by the Government separately. That is why it could stop without the settlement itself changing.
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The Fund warns that the 25% payments may be discontinued and retiree health insurance may lapse.
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The Government informs the Fund there is no funding for the 25% beyond December 31, 2025.
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The Fund issues a notice on the cessation of 25 percent benefit payments.
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A further important notice on the cessation follows.
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The settlement guarantees 75%. The other 25% was never part of that guarantee.
4 · What it means for a check
Take a retiree whose full benefit is $1,500 a month.
5 · What you can do
The Settlement Fund has urged members to contact their representatives, keep their annuity information (Form SF-200) up to date, and check whether they qualify for other health insurance.