The NMI Settlement Fund is warning retirees of a possible lapse in government-provided health insurance coverage and the end of supplemental 25% benefit payments after Dec. 31, citing funding shortfalls in the upcoming fiscal year.
On Nov. 19, Finance Secretary Tracy Norita told the Senate Fiscal Affairs Committee that coverage through Aetna International Inc. will expire at year’s end. Without a $7.2 million appropriation in the fiscal 2026 budget to cover premiums, retirees may lose insurance unless lawmakers approve new funding.
Gov. David M. Apatang has proposed a revised budget that would secure retiree coverage through a loan from the Marianas Public Land Trust. The plan has not yet been approved by the Legislature. Under the settlement agreement, the government is required to provide retirees the same health insurance benefits offered to full-time employees.
The Settlement Fund also reported that the government lacks funding to continue the 25% supplemental payments beyond Dec. 31. While not part of the Settlement Agreement, the CNMI government has continued the payments in recent years.
Officials urged retirees to explore alternative insurance options and to contact their representatives as discussions continue. Fund representatives said they would keep members informed of developments.
The Settlement Fund was established following the class-action lawsuit Betty Johnson v. Eloy S. Inos, after the collapse of the original NMI Retirement Fund. Under the 2013 settlement, the government is required to make annual payments to the fund, which in turn pays at least 75% of retirees’ full benefits
