Previous Story
Retirees to get COLA by Oct. 15
|
Posted on Oct 07 2005
Some retirees have already been calling the NMI Retirement Fund to express their delight over the reported release of their cost of living allowance this year, according to Fund administrator Karl T. Reyes yesterday.
“They’re very happy, of course. One caller was surprised to learn that it’s the first time after many years that the government is paying the COLA from the revenues,” said Reyes.
The Fund had said that since 1998, it stopped receiving COLA remittance from the $2 million appropriation through Public Law 8-31. The Fund said it used to tap retirement contributions to pay off retirees’ COLA. This year, however, the Fund decided to hold it off until the government remits the appropriate funding.
The governor authorized earlier this week the release of $687,686 worth of COLA.
Meantime, Reyes said that retirees will begin to receive their 2005 COLA on Oct. 15.
Reyes said that only the first nine payments or from January to May 15 COLA will be received on Oct. 15. This is because the Fund’s computer program can only handle single digits or only up to nine payments. On Oct. 30, retirees will get their COLA for May 30 to Sept. 30, 2005. The COLA for the rest of the year will be paid in the next pay periods.
Reyes clarified that the released funding of $687,686 covers the COLA obligation up to December this year.
The government’s COLA payment is up this year at 2.7 percent. It is tied to the U.S. Social Security COLA, which is at 2.5 percent.
The Fund said that 1,303 retirees are eligible to receive their COLA this year. COLA is given annually to retirees aged 55 years and older. Reyes earlier said that the amount due the eligible retirees this year totals $867,000.
Yesterday, Reyes said that the figure is now down to over $600,000 because some retirees had already passed away.
The Fund has some 2,000 retirees.
