An amendment to the casino law of Saipan has been proposed by Representative Blas Jonathan Attao. The measure he introduced calls for the establishment of a Casino Gross Revenue Tax Account and a CNMI Retiree Future Generation Pension Plan.
According to Attao, the purpose of the new instruments will be to aid the restoration of the 25% reduction of the pension fund. Currently, only $10 million out of the $15 million of annual licensing casino fees are fed into the fund, which is highly insufficient to cover the deficit. The necessary amount has been estimated at $17 million per year.
House Bill 20-28 foresees that the annual casino fee of $15 million be allocated for investment into the Settlement fund as well as towards the outstanding pension payment. The sum can also prevent the Trustee Ad Litem from using the corpus and thus preserve the lifespan of the fund intact. That way, pensions will be paid out to retirees and put into circulation, thus enhancing the economy of the Commonwealth.