Retirees want payment of bonus assured

For 21 years, Brigida Ichihara had worked for the Public School System, serving as teacher and principal until her retirement from government service on December 4.

The former principal of the Koblerville Elementary School would have stayed on, but opted to retire last month out of courtesy for Gov. Pedro P. Tenorio who has repeatedly prodded eligible employees to resign to trim down government personnel.

It was her way to help the cash-strapped government slash spending on payroll — which comprises about 75 percent of its budget — amid declining revenues triggered by the worst crisis to hit the Northern Marianas in 50 years.

But now the outspoken educator is seeking assurance from CNMI leaders that she will get retirement benefits due her, including a cash bonus equivalent to 30 percent of her annual salary as provided under the law.

Ichihara led dozens of retired teachers and employees of PSS when they trooped yesterday to the House of Representatives to lobby against what may be forfeiture of the money they had waited to receive for more than 20 years.

“We understand the financial problem facing the government, but they’ve got to live up to their word, to what they wrote in the law,” she told in an interview. “It’s not our fault and we shouldn’t be penalized for it.”

Angelita Buniag echoed the same sentiment. A vice principal at Hopwood Junior High School prior to her retirement on Dec. 4, she said she left her job to heed Tenorio’s call and to help ease the burden of his mounting financial obligations.

“We understand that there is no money,” Buniag explained. “If there is a way for us to collect the bonus, I hope (government officials) expedite the process for us to get the money soon.”

While Ichihara, Buniag and others who met with legislators are not the only ones edgy over potential loss of their retirement benefits, many recently retired civil servants have asked whether it will affect their monthly pension or annuities.

Rep. Heinz Hofschneider, chair of the House committee on Health, Education and Welfare, pledged to assist them, saying they will pass legislation to ensure that the retirees receive the 30 percent bonus and the benefit is reflected in their annuities.

“All we want is security that it will be included because it does affect our pension,” said Ichihara, citing that an average of $2,000 each year may be lost from the monthly pay without any definite guideline on the bonus.

The proposed bill to be introduced next week will also seek commitment from the government to pay out the benefit once funds are available, according to Hofschneider.

The island government is facing a huge budget shortfall this year due to steep decline in actual revenue collections spawned by the prolonged crisis in Asia, its main source of tourism revenues and investments.

Hofschneider earlier raised fear that some 110 retirees may lose their lump sum bonus altogether and non-receipt of the money would reduce their annual pension.

Finance officials previously had sought help from the legislature to repeal or amend existing laws, including the retirement benefit, which will cost the government millions of dollars in additional expenditure.