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Some 30 retirees ‘double dipping’
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Posted on Nov 29 2004
The NMI Retirement Fund has threatened to cut the pension benefits of some 30 retirees following discovery that they have been “double dipping” into the government’s coffers.
This refers to retirees who have been re-employed in the government and are getting salary and earning retirement benefits anew while receiving their monthly pensions at the same time.
Fund administrator Karl T. Reyes said yesterday that notices were sent to those concerned, prompting these individuals to appeal their cases. He declined to identify these individuals.
“It’s a case of double dipping. There’s plenty of them and some of them had appealed and asked for a hearing,” said Reyes.
He said the Fund board of trustees agreed to grant the retirees a chance to air their side in a hearing. The hearing will be held possibly next week.
Reyes said the Fund would ask the employees to either choose their job and stop receiving pension or keep their pension but resign from government work.
He said these retirees are currently employed in the Legislature, Department of Public Health, Mayor’s Office, and the Department of Labor.
“The board’s decision is to hold a hearing,” said Reyes.
Retirees receive their pension pay every 15 days. There are some 2,389 retirees in the CNMI, including 600 surviving spouses and dependents.
The Fund releases about $938,000 solely for pensions every 15 days. Reyes said this amount would go up by January 2005 in view of a 2 to 2.7 percent implementation of cost of living allowance. COLA is given to retirees aged 55 and above.
He said the COLA adjustment for next year would translate to an additional $80,000 payment for the retirees.
Double dipping drains the government’s retirement system funds as it allows the employer, which is the government, to pay the member or a retiree twice in terms of pension benefits and salaries.
Currently, the CNMI laws only allow “double dipping” in certain professions such as teaching and medical job where there are a shortage of personnel.
