Ex-CPA official told to return overpaid retirement benefits

Retirement Fund officials yesterday asked a former ports authority official to reimburse overpayment of $110,000 in retirement benefits following review of erroneous accrued sick leaves.

Appeals made by former Commonwealth Ports Authority security chief Joseph A. Reyes were thrown out by Fund board members after a series of hearings and evaluation of the case.

According to the NMIRF decision, CPA erroneously converted portions of Mr. Reyes’ compensatory time and overtime to accrued sick leaves, all of which resulted in an overpayment of benefits.

Fund Administrator Juan S. Torres earlier ordered the termination of Mr. Reyes’ benefits and recommended the reimbursement of $110,434.80 in total claims.

The administrator also denied Mr. Reyes of certain retirement benefits, which was found to be unjust and illegal. Mr. Reyes then brought his appeal before the NMIRF Board of Trustees.

Mr. Reyes argued that his retirement benefits have been wrongfully terminated by the Fund, in reliance on a report issued by the Office of the Public Auditor stating that certain hours of his compensatory time were erroneously credited to his service credits.

Under the recently released decision, the board reaffirmed the fund administrator’s recommendation after re-calculation of the accrued sick leaves and ordered permanent termination of Mr. Reyes’ benefits.

The board also asked Mr. Reyes to return the overpaid benefits.

“Mr. Reyes was not eligible for the compensatory and overtime hours granted to him by CPA. Further, CPA erroneously converted portions of this compensatory time and overtime to accrued sick leave,” the decision reads.

The former security chief was employed by CPA since 1979 and retired from the service in December 1996. Records showed that during the Persian Gulf crisis in 1991, Mr. Reyes worked hours in excess of his normal 40 hours per week.

During that time, CPA has no provision in its Personnel Manual granting compensatory time for his position. He was not paid overtime for the extra hours of work nor was any certification for these hours were provided to the NMIRF.

The retiree resigned from CPA in 1996 and was approved for retirement by Fund personnel in February 1997 based on a calculation showing a total credited service of 25 years and 24 days.

But in 1999, OPA conducted an audit of CPA and determined that it has illegally granted overtime and compensatory time hours to, and erroneously converted sick leave hours for, certain employees including Mr. Reyes.

The audit report further explained that CPA converted compensatory time to accrued sick leave just prior to Mr. Reyes’ departure from ports authority.

It was also OPA through the assistance of the Attorney General’s Office which recommended that the Fund to start working to recover the overpayments.

Last year, Fund officials notified Mr. Reyes that his retirement eligibility and benefits had been re-calculated in line with OPA findings, resulting in a reduction of service credits by one year, three months and twenty five days.

The findings also proved him ineligible for retirement and retirement benefits.

Fund Board Chair Vicente Camacho said the agency is under legal obligation to correct errors in calculations and collect overpayments made to members.

In the event of fraud, misrepresentation or concealment of material information, the Fund must withhold all benefits until such time as the full amount of the overpayments has been recovered. (EGA)