CPA holds off paying new Fund’s employer contribution

The Commonwealth Ports Authority will hold off paying a higher employer contribution rate to the NMI Retirement Fund until the existing lawsuit between the central government and the pension agency is resolved.

CPA executive director Edward Deleon Guerrero admitted this during a recent board meeting, arguing that the agency is still paying in a timely manner what is mandated to be paid which is a 37-percent rate.

The Fund implemented a 61-percent employer contribution rate effective fiscal year 2012 which started in October last year. Deleon Guerrero said that now that the ports authority is party to the outstanding lawsuit between the Fund and the administration, it will wait for further determination from the court if it will allow the implementation to agencies of the new actuarial rate contribution.

CPA, and other independent agencies, filed a motion to intervene in the said case which was granted by the court. “We were granted by the court [to intervene] and as a result of that we are holding back on the 61 percent rate,” said the executive director.

Deleon Guerrero expressed the agency’s desire to transfer out from the pension program. However, he admitted that this will only be possible if a law will be established or through a court decision.

“We’re hoping that something will happen—either the Legislature will come out with a new legislation that will cap on how much each department will pay [to the Fund] or the court decides,” he said, adding that if the CPA will be allowed to move out from the Fund, the agency will look for another type of retirement program that would be suitable for its employees.

The executive director said CPA has a total of 188 personnel at present. These are employees serving all ports and airports in Tinian, Saipan, and Rota. Since he assumed the post three years ago, Deleon Guerrero said he was able to bring down the personnel count. CPA, he said, has an approved 220 FTEs for FY 2012.

Unlike employees in other government agencies and corporation, CPA personnel are enjoying the 80-hour work schedule and just recently, were approved by the board merit increases in their salary. This was a result of the agency’s good performance in meeting the required bond ratio for both airport and seaport.

Deleon Guerrero vowed that before any work hour reduction is implemented, CPA will first look at the other areas of its operation that can be streamlined or reduced.

The ports authority is an autonomous agency that received no funding assistance from the local appropriation. Its projects are mostly funded by the federal government and by its own revenues.