Previous Story
Judge orders equal contribution rates for autonomous agencies
|
Posted on Apr 20 2012
By Ferdie de la Torre
Reporter
Reporter
Superior Court Associate Judge Kenneth L. Govendo granted yesterday the request of the Commonwealth Ports Authority, Commonwealth Utilities Corp., Commonwealth Development Authority, and Northern Marianas Housing Corp. to be treated equally with the CNMI government when it comes to employer contribution rates.
Govendo reduced the employer contribution of these autonomous agencies to its previous rate of 30 percent-a rate similar to the one set for the government.
The judge said that under the NMI Retirement Fund’s defined benefit plan, the government and autonomous agencies are treated as a single employer.
While the Public School System, Northern Marianas College, and government’s contribution rate is currently set at 30 percent, CPA, CUC, CDA, and NMHC are remitting their employment contributions at the new rate of 60.8686 percent.
In his ruling yesterday, Govendo agreed with the intervenors that if they are required to pay the 60.8686 percent employer contribution rate, their mission and services to the Commonwealth will be compromised as rates for doing business will increase.
Govendo said any rate increases at CPA, CUC, CDA, and NMHC arising from paying 60 percent employer contribution “will further weaken this economy and cause further grief to all people, including pensioners.”
