Fund: Filing of retirement comes pouring in

Applications for retirement from government service keep piling up at the NMI Retirement Fund barely three weeks before the yearend.

Fund administrator Karl T. Reyes said that as of yesterday, he has at least 130 names on his table for retirement processing.

“It’s plenty of work up here at this time, reviewing each person’s records, computing and reconciling figures,” said Reyes.

He said he expects that more names of retiring personnel are coming in.

He noted that he has not received the names of those reported to be leaving their posts such as Commonwealth Development Authority executive director Maria Lourdes S. Ada and Commonwealth Ports Authority executive director Carlos Salas.

Ada, who had been with CDA for over a decade, decided not to renew her contract on Nov. 30.

Ada, who is eligible for retirement, is planning to pursue a law practice in the CNMI.

Salas, meantime, is leaving his post this Friday after 15 years at CPA, including eight years as its top executive.

Several other government officials and staff have expressed their desire to leave the government this year.

While their reasons of leaving may vary from personal, political, to financial, Reyes said that more eligible personnel are expected to retire from government because this is the last year that they could claim a 30 percent early retirement bonus.

“Those who have 20 years of service can retire now and be entitled of the 30 percent bonus. This is the last year for this [bonus],” said Reyes.

Earlier, a lawmaker introduced a bill to extend the 30 percent retirement bonus beyond this year, warning that its statutory demise would result in an exodus of retiring employees.

Saipan Rep. Arnold I. Palacios cited that at Northern Marianas College alone, the early retirement of employees this year costs some $250,000.

From the Public School System, there are 61 personnel who are leaving this year.

Palacios said that following the passage of Public Law 13-60 or the Retirement Integrity Assurance Act, the early retirement bonus would be applicable only up to December 2005.

Under the provision, a government personnel gets a bonus equivalent to 30 percent of his or her annual salary upon retirement after 20 years in service.

The bonus used to be paid off in lump sum but the financial difficulties confronting the government since the late ‘90s have reportedly delayed its release to claimants.

Reyes clarified that the early retirement bonus is paid for not by the Fund but the respective government agencies.

For instance, if Ada qualifies for an early retirement, it is the CDA that will pay her the bonus.

“The agency has to pay for it,” said Reyes.