Fund told to pay retiree’s disability retirement benefits

Superior Court associate judge David A. Wiseman directed the NMI Retirement Fund yesterday to pay the disability retirement benefits of a retiree and to take immediate action on the applications for disability retirement filed by three others.

Wiseman ordered the Fund to pay Leilani M. Basa-Alam an annuity of 66-2/3 percent of her salary at the time of separation from government service and back pay amounting to the difference dating back to April 4, 2009.

Wiseman also ordered the Fund to give Barbara C. Santos, Mariano Arriola, and Balbina DLC. Taisacan the opportunity to resubmit their applications for disability retirement.

The judge ordered the Fund’s board to take immediate action and reach a determination in the cases of Santos, Arriola, and Taisacan within 30 days from the submission of their applications.

In Basa-Alam’s case, a factual determination has been made awarding disability retirement at a rate of 50 percent of her salary. Wiseman pointed out, though, that the CNMI Supreme Court’s recent ruling in Michael P. Cody’s case has made it clear that Public Law 6-17 applies to Basa-Alam and therefore a rate of 66-2/3 percent should have been awarded.

With respect to the cases of Santos, Arriola, and Taisacan, Wiseman remanded them to the Fund for a factual determination and decision in accordance with the law set forth in the Supreme Court ruling and in his order.

The Fund board alleges that Santos and Arriola have not submitted any factual disputes.

But Wiseman said he is reluctant to “remand back to a body who appears to have little to no consideration of the urgency of claims before it, especially when such claims have a large impact on the livelihood of claimants, who by submitting applications for disability have impliedly limited capacity to work and earn a living.”

Wiseman said that pursuant to law, the Fund board must consider anew the claims for disability retirement of Santos, Arriola and Taisacan in light of the board’s fiduciary duty.

The Fund had denied disability retirement to Arriola and Santos. Taisacan’s application has been neither approved nor denied. Basa-Alam’s application for disability was approved in the amount of 50 percent of her salary.

The petitioners, through counsel Jeanne Rayphand, challenged the Fund’s decision regarding disability retirement and the subsequent action taken by the board.