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Fund approves ex-Speaker’s re-employment with govt
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Posted on Jun 20 2011
The NMI Retirement Fund has approved the re-employment of former House speaker Arnold I. Palacios with the Commonwealth government, at the request of Gov. Benigno R. Fitial.
In a special meeting Friday, board of trustees legal counsel Viola Alepuyo explained that under the law, a person who retires from government service is barred from being re-employed with the government unless that person is specifically exempted by the governor. At the same time, the re-employment would only take effect if concurred by the Fund.
Board chair Sixto Igisomar disclosed that the board had received a letter from Fitial, asking board members to concur with his decision to re-employ Palacios.
The former House speaker was recently named director of the Division of Fish and Wildlife under the Department of Lands and Natural Resources.
The board’s decision to approve Palacios’ re-employment would mean that during his re-employment period, he will only get a salary for his service and no recalculation would be made on his retirement pension.
According to Alepuyo, Palacios would also go back to being a defined benefit plan member, where he is required to pay his employee contribution and the government will pay for his employer’s contribution.
Alepuyo pointed out that Palacios’ case is for re-employment, not double-dipping.
Igisomar said their decision is also a way to formalize Fund policy. He disclosed that the Fund had received requests and inquiries from retirees asking if they are allowed for a recalculation of pension benefits upon re-employment.
“We have some issues in the past where we have retirees who are questioning if they are actually allowed recalculation of retirement pension. They’re trying to track back to get some benefits from the Fund. So this is a way of formalizing that,” he said.
The provisions for the re-employment of retirees and permissible double dipping are codified in 1 CMC 8392.
Fund deputy administrator Esther Ada told Saipan Tribune that proper compliance with re-employment and double dipping is a priority issue for the Fund and consistent review ensures that retirees receive the correct pension benefits.
