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‘Pension spiking’
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Posted on May 25 2012
Discovering the “pension spiking” that gave some 150 retirees extra pension annuity is an ill-gotten compensation, and the Retirement Fund was tardy to recalculate the pension annuity of these retirees to effectuate the correct, adjusted, lawful and justified annuity amount. Someone in the Retirement Fund is sleeping at the helm for its failure to implement 1 CMC, Section 8313 (p) of the retirement law. But that does not make it right for these retirees to continue earning what they wouldn’t have received had the Retirement Fund applied the correct pension calculation for the annuity amount of these retirees.
This situation is telling that it is possible that some cases may have resulted in faulty and erroneous calculation derived by manual methods and use of charts that could be misapplied by mistake. No one will know if these situations were proper and correctly calculated unless the Retirement Fund make a 100 percent review and audit of retirees’ pension annuity calculation.
Then again, fraud and other intentional unlawful deeds by those in charge of these administrative functions is possible. The general public should have a need to know, and the Retirement Fund should take the necessary steps to ascertain to the general public that it has met all its fiduciary responsibilities on this.
Francisco R. Agulto
Chalan Kanoa, Saipan
