The Commonwealth Development Authority continues to remit the 30-percent employer contribution for active employees under the defined benefit plan, said comptroller Danny Militante.
At the same time, CDA also remits its 4-percent employer contribution for employees who contribute 10 percent under the defined contribution plan.
During a Development Corporation Division board meeting yesterday, Militante said the agency's decision to continue its employer contributions was at the recommendation of their legal counsel.
Militante noted that the recommendation was to accrue the 30-percent employer contribution “and wait until such time they determine the actual rate we need to pay.”
But executive director Manuel Sablan said the agency has to comply with the law, adding that the employer contribution is the responsibility of CDA to its employees.
Legal counsel Vicente “Ben” Salas explained to board members the reason for maintaining the status quo, saying the Department of Finance has yet to come up with an assessment to determine the new employer contribution rate.
“Because they have not yet come up with this assessment, it doesn't come into effect to override the 30 percent,” added Salas.
Militante disclosed that one employee submitted an application to withdraw contribution and was approved by the Fund.
“I received the approval as of Oct. 21 pay period so we're going to start ceasing the contribution from this point on,” said Militante, adding that the rest of the CDA staff will continue to remain in the defined benefit plan.
Besides the lone contribution withdrawal application, another CDA employee recently retired, and Sablan said the employee had to pay the 61 percent contribution before he was able to retire.
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