THE Retirement Fund told the House of Representatives that it opposes the proposed constitutional amendment that will allow retirees to œdouble dip.
Fund Administrator Richard Villagomez told acting Speaker Felicidad T. Ogumoro, Covenant-Saipan, in a letter that the Fund strongly opposes Senate Legislative Initiative 17-3.
Introduced by Senate Floor Leader Pete P. Reyes, S.L.I 17-3 allows qualified retirees to work again as classroom teachers, doctors, nurses and other medical professionals without loss of retirement benefits.
According to Reyes, the constitutional amendment ratified in 1997 and Public Law 11-2 did not intend to exclude medical practitioners from eligibility for reemployment.
S.L.I. 17-3, according to Reyes, will allow the CNMI to meet its human resources needs in general fields.
It will also allow the Legislature to exempt additional job categories from reemployment and may establish limits on the maximum time any retiree may be reemployed without loss of benefits.
A legislative initiative must be approved by at least three-fourths of the members of each house of the Legislature present and voting. It does not require the governors approval and will be ratified if approved by a majority of the votes cast in a general election.
Villagomez said Reyess proposal œwill place a greater strain on the fiscal integrity of an already struggling pension system.
Noting that the life of Fund will last only up to eight years if its condition does not improve, Villagomez said allowing retirees to œdouble dip will further shorten the Funds life and result in the general fund paying more salaries rather than increasing payment to the Fund.
Villagomez said S.L.I 17-3 is in direct conflict with the Constitutions Article III, Section 20 (b) which, he added, œentices eligible government employees to retire, reducing the number of government workers.
Reyess proposal, he added, is obviously a œdeparture from the concept of retirement.
Villagomez also reminded lawmakers that the government still owes the Fund over $317 million in employers contributions.
Moreover, he questioned lawmakers to amend House Bill 17-98 which will stop accrued retirement and disability benefits beyond $75,000.
Instead of $75,000, the Fund recommends $40,000.
Villagomez said a $75,000 cap is not going to save anything.
The House amended the bill as requested by the Fund before passing it last week. All the 16 House members present voted for it.
On Friday, Villagomez told the Retirement Fund trustees that the pension agencys accrued unfunded liability as of Oct. 31, 2010 was $680 million. The amount was over $520 million in May last year.
Article source: http://www.mvariety.com/2011011733516/local-news/retirement-fund-opposes-double-dipping.php
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