Retirees asked to return hundreds of thousands in overpayments

A group of CNMI retirees have formed a CNMI Retirees Association to give government retirees a voice against actions taken by the Settlement Funds to collect “overpaid” benefits due to compensation for overtime hours.

The former Retirement Fund, now Settlement Fund, has written letters to a number of retirees who have overtime hours factored into their retirement benefits.

“It’s important that we get the word out that we’re concerned about this situation. A lot of our retirees are greatly affected,” said association secretary Mariano Taitano.

According to Taitano, even deceased retirees are affected.

“The Settlement Fund has informed the family that they have to pay these overpayments and that’s affecting the estate of the deceased retirees,” he said.

In an interview with retirees yesterday, they said they are required by the Settlement Fund to pay back anywhere from a few thousand dollars to as high as over $120,000.

Taitano explains that the Settlement Fund is basing their decision to collect these overpaid benefits on Public Law 13-60 which was enacted in 2003.

“The law that is supposedly repealing overtime pay, as well as bonuses for certain elected officials, was enacted back in 2003. However, the Settlement Fund did not collect overpayments then. Now, retirees are being asked to pay back compensation for overtime hours dating back to when they first started receiving their retirement pensions. I’m baffled with this decision, why can’t they go from when the law was enacted. This law did not say overtime hours. Whether that word was mistakenly omitted, therefore it’s only fair that these retirees be left alone and receive their benefits also based on their overtime hours,” he said.

Taitano further explains that when it comes to overtime hours, retirement contributions are deducted and employer contributions were also remitted into the Settlement fund.

“If it’s the Settlement Fund’s contention that retirees have to return these overpaid retirement benefits, then they must offset it from their retirement contributions. It’s only logical and fair. After all, these, retirees contributed that and you’re going to keep the money? Then refund that money or offset it from the overpayment. Where’s the fairness,” he said.

Taitano said retirees have met with members of the legislature regarding this issue and have lodged their respective complaints through the help of Jean Rayphand.

“Retirees have lodged complaints with the Settlement Fund and its subject to arbitration,” he said.

Affected retirees

Eusebio Camacho Borja, retired CUC powerplant operations foreman, emotionally shared that he is a struggling retiree who is now being asked to pay $117,000 to the Settlement Fund in overpayments.

“I’m greatly affected by this retirement fund issue. They are asking me to pay $117,000 from my pocket, how dare you take that. I worked for the CUC powerplant, I did everything there, there were many times I stayed there from midnight to morning. [The] $117,000 is a lot of money. Because I made so much in overtime, that doesn’t mean they have the right to take this money back. I worked for it. There were times I had to work at the plant with just one co-worker, doing the job of seven people. I worked over 120 hours every two weeks plus the regular 80 hours so that means I worked over 2,000 hours in a year on top of my service hours. The Public Auditor, the Attorney General, and Settlement fund should be liable in this situation. Where is the AG, the OPA, it’s their job to make sure there’s a balance. They aren’t doing anything. Nobody wants to address this,” he said.

In tears, Borja said there are many struggling retirees like himself who are now being required to pay back thousands from their own pockets.

“I’m pissed off. Please, we need someone to do something about this,” he said.

The Retirees Association’s vice chair Robert Sablan, a former CUC water division manager, shared that he was notified recently that he has to pay back nearly $80,000 and the Settlement Fund has already started deducting the overpayment from his pension.

“I am one of the individuals who received the notice of overpayment. Currently, I’ve been scheduled for a hearing. I was notified that I have to pay back almost $80,000. I don’t know how the Settlement Fund calculates this, but I was given the letter stating how much I have to pay back. They also me for my bank account information, if I’m paying mortgage, vehicles, and others. Currently, I’m being deducted almost $300 every pay period,” he said.

Because of this, Sablan said, he had to make the difficult choice to stop paying for his life insurance.

“I cannot pay it while paying other bills,” he said.

Meanwhile, CNMI Retirees Association chair Juan Iguel Tenorio shared that while he is not affected by the issue, he supports retirees who are and will do what he can to help.

“I am not affected by the overtime overpay situation. However, as a retiree, it’s my duty to come out and help our families who are being greatly affected by this ongoing situation regarding overtime payments and now that they started receiving letter for them to pay back this overtime, I’m here to support and continue to find a resolution that could augment this hardship for our retirees.

Susan Babauta, board member of the newly established Retirees Association, also disclosed that she is not affected by this situation but intends to speak up for retirees who can’t.

“But I do have a family member who are affected and I’m going to be there to see what I can do to help my family,” she said.

Retirees who are interested in joining the association or are affected by this issue and want to get more information may contact Mariano Taitano at (670) 287-0251.