Nine lawyers contracted by Fund; more may be needed

The NMI Retirement Fund disclosed yesterday that there are nine lawyers currently serving the agency to represent the board and its management in different legal matters.

Fund legal counsel Viola Alepuyo said, however, that this is not considered “excessive” and does not incur too much cost for the agency as most of these lawyers work on either short-term or per-hour basis.

Alepuyo made the clarification to belie claims that the Fund employs too many attorneys.

Depending on the impact of the Beneficiaries Derivative Act, Alepuyo said the Fund may need more lawyers in anticipation of potential litigation that may arise from the new law. The Act allows retirees to sue if the Fund board refuses to take such legal action.

Alepuyo said the Fund has only two in-house legal counsels who get regular salaries—Christopher Timmons and Carolyn Kern. The rest, including herself, are paid on a per-hour basis.

“I want to point out that there are only two in-house counsel receiving regular salary from the Fund. Everybody else only gets paid when they work,” she told Saipan Tribune yesterday.

Based on its records, the Fund’s expenditures for legal fees and representations amounted to $250,000 in fiscal year 2010. The amount significantly declined to only over $100,000 in fiscal year 2011.

Alepuyo’s contract is for one year and she is paid $150 per hour of service to the board of trustees. Saipan Tribune learned that she volunteered to reduce her rate in fiscal year 2011—from $200 per hour down to $150 per hour—in consideration of the agency’s financial situation.

Alepuyo resigned last month in the wake of the newly signed Beneficiaries Derivative Act. Another lawyer, Braddock J. Huesman, has also resigned. Both were asked to stay for now to assist in the smooth transfer of the Fund’s cases to their successors.

Of the Fund’s nine lawyers, Alepuyo said that three serve as administrative hearing officers: Maya Kara, Bruce Mailman, and Edward Manibusan. They handle appeals for the Fund, the Workers Compensation Commission, and other areas.

Alepuyo said the present number of administrative hearing officers is pursuant to the needs of the agency and in accordance with the findings of the agency’s internal auditors.

She cited as example the influx of appeals from members who disagree with the decision of the Fund pertaining to underpayment and overpayment in their benefits as well as double-dipping issues.

Alepuyo said the two in-house counsel—Timmon and Kern—cannot handle administrative cases because they represent the Fund on these administrative appeals. Other contract attorneys hired by the Fund are John Rice, who handles cases pertaining to investment matters; and Mark Hanson, who handles a specific case for the Fund.