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Ex-govs, lt. govs could lose insurance coverage
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Posted on Jul 29 2008
The Commonwealth’s former governors and lieutenant governors are on the brink of losing their insurance coverage because the central government has not remitted money to fund the special annuity program.
NMI Retirement Fund board of trustees chair Juan T. Guerrero said its insurance providers have threatened to terminate the former officials’ enrollment in the life and health insurance program if the CNMI government continues not to pay.
The Retirement Fund has already been unable to pay special annuitants on July 15, 2008, because of the government’s failure to fund the program. To date, the Fund still has not received any money for the special annuitants; therefore, the former governors and lieutenant governors again will not receive their special annuity on July 31, 2008.
“The non-transmittal of monies from the government to fund special annuitants is very alarming,” Guerrero said in a letter to the Legislature. “Equally alarming is the threat of these special annuitants’ losing their insurance coverage for health and life. The Fund has been informed by Aetna Global and NetCare that special annuitants’ enrollment in their health and life insurance program, respectively, will be terminated upon non-payment of insurance premiums for three pay periods.”
A CNMI statute entitles every former governor or lieutenant governor to a special retirement annuity of 65 percent of the highest salary authorized by law for each of these positions.
The special benefits total about $45,000 each quarter.
However, a governor or lieutenant governor who is entitled to any other retirement compensation from the CNMI government has to choose to receive either that compensation or the special annuity. Some governors and lieutenant governors have enough years of public service to qualify for regular pension benefits.
