$3.5M retiree bonus disbursement set for Wednesday

Acting governor Victor B. Hocog last Friday signed House Bill 20-145 authorizing the appropriation of $22 million of the Casino Gross Revenue Tax account for the payment of the 25 percent of the Settlement class members’ full benefits and bonuses. The bill becomes Public Law 20-35.

The public law sets aside $3.5 million of the $22 million CGRT for bonus payments to be equally distributed to all retirees and beneficiaries.

Following the signing of the bill, the Department of Finance notified the Settlement Fund of the available funding in accordance with Public Law 20-35. Official disbursement of the payments is scheduled for Wednesday, Dec. 20, 2017, subject to the Settlement Fund’s appropriate action.

According to Secretary of Finance Larrisa Larson, the Settlement Agreement that the CNMI entered into to address the CNMI retirement issues prevents the implementation of a cost of living allowance (COLA).

Larson adds that because the administration recognizes that retirees are faced with increased cost of living expenses, the administration remains committed to releasing an annual bonus to retirees in place of the COLA until such time that the Settlement Agreement ends and the COLA can be reinstated.

“We are pleased to inform retirees and beneficiaries that the bonus will soon be available and we remind all retirees that this bonus is subject to taxes and must be filed as part of your tax filing in April of next year. In the previous year, each retiree received just over $1,200 and Gov. Torres, Lt. Gov. Hocog, and the Legislature are very pleased that we are able to appropriate funding for bonuses again and are very grateful going into the new year,” Larson said.

Hocog noted that Torres remains committed to ensuring the security of benefits for retirees and is very pleased to appropriate another bonus to retirees and their beneficiaries this year.

“With this, I am happy to share that I have also signed House Bill 20-129 into Public Law 20-34 to address further concerns of the Settlement Fund Trustee and to reserve funds generated from the CGRT. This prioritizes and earmarks the first $22 million of the CGRT, which is put in place so that our retirees and their beneficiaries can continue to receive their hard-earned pensions. Along with Torres, it is our hope to continue this work of progress together as we press forward in the coming year. We wish you all a very merry Christmas and a prosperous New Year. May God bless you with peace and joy in the year ahead,” Hocog said.

Due to differences in criteria and the timing of the holidays, retirees, and beneficiaries with any concerns must contact the Settlement Fund directly.