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NMIRF asks two ex-CPA officials to return excess benefits
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Posted on Apr 19 2000
The Northern Mariana Island Retirement Fund has asked two former officials of the Commonwealth Ports Authority to return the early retirement benefits improperly paid to them.
NMI Fund Administrator Juan S. Torres said he has sent a letter to former CPA Executive Director Carlos Shoda and ex-Chief Security Joseph A. Reyes seeking the payment of close to $127,000 in excess retirement benefits.
Both Mr. Shoda and Mr. Reyes have yet to respond to the Fund’s demand.
The Fund’s decision to recover the amount was based on the findings and recommendations drawn up by the Office of the Public Auditor which showed that the ex-CPA officials inflated their leave and compensatory time credits to receive higher pension.
Public Auditor Leo LaMotte asked the Fund to discontinue payments to Mr. Reyes after investigations proved that he was not qualified to receive early retirement benefits.
In addition, the OPA urged the Fund to properly calculate and adjust the pension benefits of all other members by disregarding overtime and compensatory time hours that were considered additional credited service.
The OPA asked the Fund to adjust the pension benefits payable to Mr. Shoda which was actually $5,114 higher than what other government officials who receive the same salary would normally get.
Based on the CPA personnel manual, Mr. Shoda was paid $12,114 in compensation benefits.
OPA also noted that the excess annual leave credits granted to the former executive director increased his average annual salary and pension benefits by at least $222 monthly or $2,674 annually.
The OPA report said Mr. Reyes claimed excessive compensatory time of 1,800 hours to qualify for early retirement benefits, which allowed him to receive the 30 percent early retirement bonus of $13,973.76 paid out of CPA funds.
This paved the way for Mr. Reyes to receive monthly pension payments of $2,473.36 from the NMIRF beginning January 1997.
According to the OPA, the previous CPA administration allowed the conversion of the two officials’ unused compensatory time hours to sick leave for use as additional years of credited service in the computation of their retirement allotment.
