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Atalig: COLA money came from revenues
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Posted on Oct 19 2005
Finance Secretary Fermin M. Atalig maintained yesterday that the money used to pay off the retirees’ cost of living allowance this year came from the government’s General Fund.
“Where else are we getting it but from the revenues? It’s from BGRT. It’s from other taxes and revenues that get into the General Fund,” said Atalig.
House Speaker Benigno R. Fitial recently wrote Atalig asking the latter to show the source of funds used to pay off the retirees’ COLA. Fitial wants “a full accounting of the source of funds used to release the NMI Retirement Fund’s cost of living allowances, which were long overdue.”
Atalig said yesterday that he has drafted a formal response to Fitial.
Gov. Juan N. Babauta had authorized early this month the release of the 2005 COLA amounting to $687,686. It was reportedly the first time for the government since 1998 to make such payment.
The Fund said that since 1998, it stopped receiving COLA remittance from the $2 million government appropriation through Public Law 8-31. It said this was one of the many measures that the Legislature passed without identifying any sources of funds.
In the past six years, the Fund said that it had tapped the active members’ retirement contribution to pay off retirees’ COLA.
Only this year did the Fund Board decide to hold off the COLA payment until the government remits the appropriate funding.
Retirees usually receive COLA beginning January of each year.
Critics said that the governor authorized the COLA release only because it is an election year. Babauta is seeking re-election this year. Fitial is running against him.
COLA, which is currently at 2.7 percent of retirees’ pension, is given annually to retirees aged 55 years and older.
Fund administrator Karl Reyes said there are 1,303 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. The Fund said it releases $1.1 million for the retirees’ compensation every pay period.
