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Bonus hinges on funds availability
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Posted on Jan 08 1999
Gov. Pedro P. Tenorio yesterday assured retirees that they will receive the 30 percent retirement bonus once funding is available, easing fears of hundreds of government employees that they would lose the benefit mandated by law.
“As soon as we have the money they will receive their bonus,” the governor said, adding that his administration is not turning its back to its financial responsibility.
“There is no question that the government has an obligation and we should pay our obligation to our employees,” he said.
The governor’s statement came after dozens of retired teachers and employees of the Public School System trooped to the House of Representatives to oppose plans that would suspend the law granting cash bonus equivalent to 30 percent of their annual salary.
The retirees told the House Committee on Health, Education and Welfare, chaired by Rep. Heinz Hofschneider, they retired from government service as a way of helping the administration reduce its payroll costs, which account for more than 60 percent of the yearly appropriation.
Tenorio had previously appealed to government employees eligible for retirement to bow out from public office in order to trim down the number of personnel and cope with declining revenue collections spawned by the worst economic crisis to hit to the Northern Marianas in years.
Initial estimates showed that the financially-troubled government would have to raise at least $5 million to cover payment for the bonus of government workers who retired last month.
Finance officials had sought the help of the Legislature to repeal or amend a package of measures that will further deplete government coffers, including the retirement bonus.
Hofschneider has said a bill will be proposed to seek the commitment of the government that it will pay the 30 percent retirement bonus.
