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Retirees’ COLA released
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Posted on Oct 05 2005
The CNMI retirees’ much-awaited cost of living allowance or COLA amounting to $687,686 for 2005 has finally been released.
Press secretary Peter A. Callaghan said yesterday that Gov. Juan N. Babauta authorized the Department of Finance on Tuesday to release the annual benefit for retirees.
The day before that, Babauta signed a proclamation declaring October as NMI Retirement Fund month.
COLA, which is now up at 2.7 percent, is given annually to retirees aged 55 years and older. Fund administrator Karl Reyes said there are 1,300 retirees who are qualified to receive COLA this year. The Fund has some 2,000 retiree members.
COLA is released together with the retirees’ pension every pay period.
Reyes said a retiree receives a minimum of $6,000 pension a year or $250 per pay period.
The present law does not set a maximum level of pension payment. Right now, the highest pension given to a retiree is $162,000 a year.
Every pay period, the Fund releases $1.1 million for the retirees’ pension or over $26 million a year.
Documents showed that Reyes initially asked for the drawdown of $687,686.53 in February this year for COLA payments. The Fund followed up the request in May.
“We are appealing to you Mr. Secretary to do something with the COLA [$687,686.53] to pay 1,303 annuitants,” said Reyes.
He said this allotment is from the $2 million appropriation set aside in Public Law 8-31, which was re-authorized under the continuing resolution, P.L. 13-24.
Earlier, the Fund said that it decided to withhold the release of a 2.7 percent COLA for lack of remittance from the central government.
Reyes had cited that P.L. 8-31, which was enacted in 1994, mandates the release of $2 million a year for three items: retirees’ COLA, special annuity for the past governors and lieutenant governors, and life and health insurance programs.
“Note: in the years 1999 through 2004, the Retirement Fund did not receive any allowance of $2 million per year,” said Reyes in his letters to Finance Secretary Fermin M. Atalig this year.
The Fund said the Legislature should increase this appropriation since the number of retirees keeps increasing every year.
In 1994, there were some 300 retirees.
