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Fund stops benefits of ex-governors and lt. governors
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Posted on Jul 18 2008
The NMI Retirement Fund has stopped paying special benefits to former governors and lieutenant governors because the central government has not remitted the money.
Fund Administrator Mark Aguon said in a letter to the Legislature that the pension program has not received the Executive Branch contribution for the special annuities for the former officials for the fourth quarter of fiscal year 2008, which covers the period between July 1, 2008 and Sept. 30, 2008.
The special benefits total about $45,000. The Retirement Fund set a July 15, 2008 deadline, but as of yesterday, the Department of Finance has not sent the money.
“It still has not been remitted, so we’re not paying,” said Aguon. He cited the Retirement Fund board’s directive stating that the agency must stop paying the benefits if the funds are not received to cover them.
Aguon added that the central government had been making timely payments until now.
A CNMI statute entitles every former governor or lieutenant governor to a special retirement annuity of 65 percent of the highest salary authorized by law for each of these positions.
However, a governor or lieutenant governor who is entitled to any other retirement compensation from the CNMI government has to choose to receive either that compensation or the special annuity. Some governors and lieutenant governors have enough years of public service to qualify for regular pension benefits.
The government’s failure to fund the special benefits for former governors and lieutenant governors was one of the causes of action cited by the Fund in its pending lawsuit against the central government.
