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No bonus for ’98 gov’t retirees
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Posted on Dec 31 1998
For the 110 employees who have opted to retire from government service this year, hopes of receiving their 30 percent bonus won’t be coming until sometime next year.
Rep. Heinz S. Hofschneider said the retirees have sought help out of legitimate fear that they may lose their bonus altogether. Their concerns also center on whether non-receipt this year would reduce their annual pension.
In a meeting with appropriate key officials and the retirement program, it was learned that the administration won’t be able to fork out the required amount for bonuses in that the cash-strapped government has only been able to collect enough to cover government payroll.
For instance, the retirees from the Public School System alone needs about $600,000 to cover this year’s bonus. The governor’s consultant on finance Mike Sablan said paying this year’s retirement bonus would have a significant impact on the local coffers. Regular payment of payroll would be derailed.
Key officials agree with Representative Hofschneider that the current law be amended to enable the 110 retirees to claim their bonus at some point next year. It would include the ability to have the bonus factored into determining their annuities.
Said Hofschneider: “It’s a difficult issue but I appeal to prospective retirees to go ahead and take their retirement now and give us the opportunity early next year to amend the current that would enable them to claim their bonus and still be able to recompute their actual annuity”.
“As hard as this recommendation may be given that perhaps all 110 retirees really look forward to using a portion of their bonus this New Year’s Eve, I beg for their patience and understanding in light of the continuing reduction in revenue generation all through this year,” he said.
A total of 155 prospective retirees are eligible for retirement, but some 40 have been determined ineligible to receive the 30 percent bonus.
