Governor backs retirement-payment plan

Gov. Pedro P. Tenorio yesterday backed the proposal of retired teachers for the cash-strapped government to come up with a payment plan that will hasten the release of their 30 percent retirement bonus.

The governor met with retirees to discuss possible ways that will prevent further delays in releasing the cash bonus, which under an existing law must be issued in lump sum.

As a way of helping the administration curb its expenditures, more than a hundred government employees have heeded calls of the CNMI leader to avail of the benefits and allow unemployed residents take on their jobs.

The government’s request to suspend the retirement bonus until revenue collections have stabilized has been approved by the House of Representatives, but has put in place safeguards to ensure that civil service employees will not lose the benefit at all and that funds will be made available at any given fiscal year for this purpose.

In a meeting, retired teachers and school principals said they were willing to receive their bonus even on a staggered basis in consideration of the financial troubles confronting the administration.

Retirees suggested that the government adjust their monthly pension to include partial payment for the 30 percent cash benefit.

According to Tenorio, he will meet with members of the Legislature and the Retirement Fund Board to discuss how this arrangement can be made possible in order to assure retirees that they will receive the bonus.

“I promise that our administration, as well as the Legislature, will look into that and try to come up with something workable and acceptable so that we can pay retirees they are rightfully entitled to even with our present situation,” the governor said.

The Northern Marianas is reeling from its worst economic crisis in years spawned by the prolonged economic turmoil in Asia, its main source of tourism revenues and investments.

The administration submitted in October a package of laws it wanted suspended or repealed, including the retirement bonus, in fear this may throw the government into deeper financial woes.

Under House Bill 11-359 recently approved by the lower chamber, the benefits will be eliminated after December 15 of this year. At least 110 civil servants are eligible to receive the bonus as of last November.