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Ex-Rep. Ada sues Fund for cut in benefits
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Posted on Apr 23 2009
Former congressman Martin B. Ada sued the NMI Retirement Fund’s board of trustees and its two officers yesterday for allegedly improperly reducing his retirement benefits.
Besides the board, Ada also sued board chair Juan T. Guerrero and Fund administrator Mark Aguon for allegedly violating his rights under the U.S. and CNMI Constitutions and for conversion.
Ada, through counsel George L. Hasselback, asked the U.S. District Court for the NMI to order the defendants to pay him damages, attorney’s fees, and court costs.
Hasselback stated in the complaint that Ada was a CNMI government employee from 1978 to 1997, when he took advantage of an “early out” retirement program.
Hasselback said Ada then began to receive his retirement benefits.
In June 2000, Ada became a House representative.
The lawyer said that, for this period of time, Ada’s retirement benefits ceased, but he began to accrue more time applicable to his eventual retirement.
Also, Hasselback said, Ada began to accrue additional benefits applicable to his eventual retirement because of his position as an elected legislator.
In 2008, Hasselback said, Ada again retired and at that point he had accrued over 25 years of time for which he was and is, due retirement benefits.
The lawyer said Fund administrator Aguon wrote Ada on Feb. 29, 2008, authorizing the retirement benefits that Ada would begin to receive from the Fund.
Upon receiving this letter, Ada discovered that his retirement benefits were much lower than he was due, Hasselback said.
“The benefits that Mr. Ada was to receive did not take into account his time spent as an elected legislator and also did not take into account a statutory increase in retirement benefits for time spent as an elected legislator,” he noted.
Ada and his counsel contacted Aguon, requesting an explanation for the insufficiency in Ada’s retirement benefits.
“To date, plaintiff has not been scheduled any appearance before the board or its designated hearing officer for a hearing to address his complaints regarding the improper reduction in the amount of his retirement benefits,” Hasselback said.
