glossary
The words you will meet in court orders, fund reports and news about the pensions, explained simply.
25% payment
The part of a retiree’s full benefit above the guaranteed 75%. It was paid separately by the Government and stopped after it said there was no funding beyond December 31, 2025.
75% guarantee
The settlement’s promise that members receive at least 75% of their Full Benefits.
Actuary
An expert who uses math and statistics to estimate how much a pension fund will need to pay, and for how long.
Actuarial valuation
The actuary’s yearly check-up of the Fund: how many members there are, how much money there is, and how much the Government must pay.
Annuity
A regular payment for life. Your monthly pension is an annuity.
Appeal
A formal request asking the Settlement Fund to review a decision about your benefits. The Fund publishes its appeal rules, forms and fees.
Assumed return
The yearly investment earnings the plan expects over the long run. For the Settlement Fund it is 5.8%.
Beneficiary
A person who receives benefits because of a member, such as a surviving spouse or child.
Class action
A lawsuit brought by a few people on behalf of a larger group with the same problem. Johnson v. Inos was a class action for retirees.
Class Member
A retiree or beneficiary covered by the 2013 settlement.
Consent judgment
A court order that records what both sides agreed to. Doc 562 in the settlement case.
Contribution
Money paid into a pension fund, by the employee from each paycheck or by the employer.
Defined benefit plan
A pension that promises a set monthly amount based on salary and years of service, rather than on how investments perform.
Final judgment
The court’s last decision in a case. Doc 561 approved the retirees’ settlement.
Full Benefits
The pension a member would receive under the original Retirement Fund rules, before any reduction.
Funded ratio
Money a fund holds divided by what it owes. 100% means fully funded.
GHLI
Group Health and Life Insurance: the Government program that provides health and life insurance to employees and retirees.
Investment return
What the Fund’s money earned over a period, shown as a percentage.
Medicaid
Government health coverage for people with low income. CNMI Medicaid: (670) 664-4880.
Medicare
Federal health insurance for people 65 and older. Questions about coverage: Medicare, 1-800-633-4227. Signing up: Social Security, 1-800-772-1213.
Minimum Annual Payment
The amount the Government must pay the Settlement Fund each fiscal year, set by the actuary. $29 million for FY 2026.
MPLT
Marianas Public Land Trust, which holds public land money in trust. The Government has borrowed from it to meet budget needs.
Net of fees
Investment returns after the managers’ fees are taken out.
Pay-as-you-go
Paying each year’s benefits from that year’s budget instead of from savings. Expected for the Settlement Fund from about 2048.
Public Law
A bill that has passed the Legislature and been signed by the Governor. Written like P.L. 24-20.
Retirement Fund
The NMI Retirement Fund, created in 1980. It ran short of money after years of unpaid Government contributions.
Settlement Agreement
The 2013 agreement in Johnson v. Inos that created the Settlement Fund. Doc 468.
Settlement Fund
The NMI Settlement Fund, which took over Retirement Fund assets to pay class members at least 75% of Full Benefits.
SF-200
The Annuity Recipient Information Update form. The Fund asks members to return it each year to keep payments going.
Surviving spouse benefit
A pension paid to a member’s husband or wife after the member dies, generally 50% of the member’s benefit.
Trustee
The independent person appointed by the court to oversee the Settlement Fund and report on it.
Vested terminee
A former employee who earned the right to a pension but has not started receiving it yet.
No match. Try another word, or ask us to add it.