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Finance releases $500K for retirees
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Posted on Jan 06 2006
The Department of Finance has released some $500,000 for the payment of new government retirees.
Finance Secretary Fermin M. Atalig said yesterday that the amount also covers the 30 percent employment of eligible retirees.
The bonus was given to retirees who worked in the government for 20 years.
The early retirement incentive was eliminated effective December 2005 following findings that it made the government’s liability with the Fund balloon over the years.
The NMI Retirement Fund now faces more than $526 million in unfunded liabilities, including an $85-million arrears in employer’s contribution.
The Fund had certified the retirement of 179 government employees and officials as of December 2005. This batch includes Gov. Juan N. Babauta, a number of his Cabinet officials such as Public Health Secretary Dr. James U. Hofschneider, Community and Cultural Affairs Secretary Juan L. Babauta, governor’s senior policy advisor Bob Schwalbach, and many others.
Other new retirees are Senate President Joaquin G. Adriano, congressmen Jesus T. Attao and Norman S. Palacios, Education Commissioner Rita H. Inos, Commonwealth Development Authority executive director Maria Lourdes Ada, and Ports Authority executive director Carlos Salas.
The Fund said that 179 retirees would mean an additional $4 million in annual pension payment by the government.
In 2005, the Fund released $4.6 million a month for pension of some 2,000 retirees. (Liberty Dones)
