The NMIRF has added a new section to their website that focuses in on their efforts to restructure and reduce the payouts to beneficiaries. This new page contains a FAQ Restructuring Handout developed by the Fund and made public on the day of the Bankruptcy filing along with a letter they handed out on the same day.
They have also posted a Presentation that they have given at earlier public hearings and presented to Judge Govendo when making the push for him to cut member benefits by up to 58%. Judge Govendo refused to cut benefits stating that it was unconstitutional and even if he had the power he would not. The presentation is titled the Fiscal Condition and Viability of THE NMIRF and is dated 03/06/2012. This is the same presentation that the Fund attorneys have given to the Federal Bankruptcy Court. They have asked the court to focus on implementing their solution found on page 17 (Plaintiff’s Exhibit 6). That solution would require the following:
- Immediate and indefinite cut of 58% across the board to all DBP members.
- Reducing the required amount owed annually by the Government for Employer Contributions (lower than actuarial rate) to just $13 million per year
- Projected 7.5% interest indefinitely
- Lift the Superior Court Order setting aside $113 million for active DBP members
There are no details or figures that indicate any payments made by the government to satisfy the now $325 million judgement. They have no projections contained in this 6th slide or any of the others that indicate any effort to collect on the money owed the Fund by the government.
The entire presentation completely overlooks the Government’s obligation to pay the judgement while at the same time reducing the governments obligation to pay the mandated actuarial rate for active DB members. Instead the full brunt of the NMIRF’s proposed solution is shouldered by the DBP members, the retirees.
The new section of the site also contains an area at the bottom when the public can post comments (click comment button then add your comments).