NMIRF sued over benefits • Former CPA official claims deductions violated his constitutional rights

Former Commonwealth Ports Authority Executive Director Carlos A. Shoda yesterday filed a civil suit against the Northern Marianas Island Retirement Fund in connection with what he called as illegal deductions on his retirement benefits.

Mr. Shoda, who retired in December 1997, was informed by NMIRF that his retirement benefits will be adjusted effective April 30,2000 because he was overpaid in the total amount of $19,851.43.

The retirement agency’s action was based on a recommendation by the Office of the Public Auditor which said that the former ports authority director was receiving benefits $5,114 higher than what other government officials on the same salary bracket get.

On May 2, 2000, Mr. Shoda’s gross semi-monthly payment was $1,455.85, or a 50 percent reduction. On May 9, 2000 Mr. Shoda informed the Fund not to reduce his gross semi-monthly retirement checks since this would constitute a violation of his constitutional rights

NMIRF told Mr. Shoda on June 14, 2000 that he has 30 days to appeal the Fund’s decision. Six days later, the Fund adjusted Mr. Shoda’s semi-monthly benefits to $2,611.98.

Mr. Shoda has requested NMIRF to schedule a hearing in late July 2000 which the Fund has failed to do so to this date.

According to Mr. Shoda, he has met all the requirements for retirement and expected to receive the such benefits. He alleged that the Fund has improperly adjusted and deducted his retirement benefits.

Claiming that he has not been afforded an opportunity to present evidence that he was entitled to his retirement benefits, Mr. Shoda through his counsel Pedro M. Atalig said the Fund has unilaterally adjusted and deducted his semi-monthly pension check in violation of his right to due process. The Fund to this date continues to adjust Mr. Shoda’s retirement benefits allegedly without any legal justification.

As a result, Mr. Shoda wants the retirement office to return the monies deducted from his benefits plus nine percent interest per annum. The former executive director demanded compensatory and punitive damages which will be proven at the trial.

The Fund’s decision to recover the amount was based on the findings and recommendations made by OPA, which ruled that the former executive director inflated his leave and compensatory time credits to receive higher pension.

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 Mr. Shoda increased his average annual salary and pension benefits by at least $222 monthly or $2,674 annually.

OPA discovered that the previous CPA administration allowed the conversion of unused compensatory time hours to sick leave for use as additional years of credited service in the computation of retirement allotment.

This led the OPA to ask the Fund to properly calculate and adjust the pension benefits of all other members by disregarding overtime and compensatory time hours that were considered as additional credited service.