Court tosses back Shoda’s retirement case to NMIRF

The Superior Court has remanded the civil case of former Commonwealth Ports Authority Executive Director Carlos A. Shoda to the Northern Mariana Islands Retirement Fund to give the NMIRF board the chance to hear the case first.

However, the seven-man board has yet to schedule a hearing on the case involving illegal deduction 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.

On May 2, 2000 , Mr. Shoda’s gross semi-monthly payment was reduced 50 percent amounting to $1,455.85. On May 9, 2000 Mr. Shoda asked the Fund not to reduce his gross semi-monthly retirement checks saying that such action 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 reduction of his benefits. 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 was determined to be entitled to such benefits when he retired. 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 is entitled to his retirement benefits, Mr. Shoda 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.

The Fund’s decision to recover the amount was based on the findings and recommendations made by the Office of the Public Auditor which ruled that the ex ports authority official inflated his leave and compensatory time credits to receive higher pension.

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