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PSS stops insurance payments for furloughed staff
Even as the nation celebrates Teachers Appreciation Week, over 700 Public School teachers and personnel have been informed that PSS will no longer be paying for their insurance since they are now furloughed.
According to a furlough update notice from PSS dated last week, PSS is unable to make premium life and health insurance payments for their furloughed employees.
“As much as PSS wants to continue paying our furloughed employees’ health and life insurance premiums, we are unable to do so,” the PSS notice stated.
The ultimate reason PSS cannot make health insurance payments for their furloughed staff is because there are no earned wages to pull the payment from.
“Our Finance payroll staff is unable to book the expense as there is no employee earned wages to pull the amount out from,” PSS said. “At the time a decision was made to continue paying for insurance coverages for our furloughed employees, we only looked at the humanitarian, legal, and financial aspects surrounding this action but failed to consult with our payroll staff on whether they can process the expense and payout until just recently.”
Additionally, there are no local funds for PSS to even support the payments due to the economic downturn as a result of COVID-19.
“Based on the foregoing reasons, CNMI-PSS is only able to pay for furloughed employees’ payroll allotments that have been earned and garnished, inclusive of government and private health life insurance premiums, up until pay period 10, or the pay period covering the days employees worked prior to being placed on furlough status [in April],” it said.
On top of not having health insurance for the time being, furloughed PSS employees were also informed that even though they are furloughed, they are not allowed to look for part-time jobs.
“While on furlough, you are still officially working for PSS. However, if an employee finds alternative employment while furloughed and does not intend to return to work at PSS, the employee will have to notify the human resource office immediately to process a resignation,” PSS said.
Currently, furloughed employees were not paid for three pay periods prior to receiving their furlough notices.
