‘Gov’t retirees should get bonus again’
Noting that the last time government retirees received a bonus was five years ago, Senate President Edith E. DeLeon Guerrero (D-Saipan) has underscored the need for the administration to provide a retiree bonus or Cost of Living Allowance to be distributed equally to all government retirees and CNMI Fund members receiving an annuity upon resolution of the CNMI’s financial crisis.
DeLeon Guerrero has filed Senate Resolution No. 23-10 that urges Gov. Arnold I. Palacios to reserve Commonwealth funds to provide such retiree bonus or COLA.
The president told Saipan Tribune yesterday that the government has the option to provide a bonus or COLA, however, she believes it is best to offer COLA that is intended to keep up with inflation similar to that the U.S. Social Security provides on an annual basis when they could.
She said while costs of goods/living is on the rise, retirees or annuitants do no see a change in their fixed income.
“This resolution allows the government to consider setting aside revenue when available to fund such offering to help our annuitants afford their bare necessities,” said DeLeon Guerrero, who introduced similar legislation in the prior legislature.
The president stated in the resolution that although the CNMI government is in a financial crisis and it continues to operate during an economic recession, a bonus for the retirees should be considered and factored into future allocations and appropriations of funds.
DeLeon Guerrero said that after the establishment of the NMI Settlement Fund in Aug. 2013, the retiree bonus was subject to the discretion of the governor and the availability of funds for appropriation.
She said that in December 2016, the Legislature appropriated $3.5 million in casino revenue collected from the Imperial Pacific International (CNMI) LLC to be equally distributed to pay a bonus to the retirees and retiree’s beneficiaries pursuant to Public Law 19-75.
The president said the last retiree bonus distributed to the Settlement class members and the CNMI Fund members was in December 2017 pursuant to Public Law 20-35.
She said specifically, the amount of $3.5 million was appropriated to be distributed equally to all Settlement Class members and CNMI Fund members receiving an annuity.
Since then, DeLeon Guerrero said, the CNMI and the people suffered catastrophic loss and damages from Super Typhoon Yutu and that retirees and beneficiaries were not spared in the typhoon loss and damages.
She said in late 2019 when the CNMI just started to recover from the devastation caused by Typhoon Yutu, COVID-19 pandemic invaded the CNMI and shut down the government operations for several months in 2020 and most of the CNMI economy for more than one year.
DeLeon Guerrero said the people, especially the retirees and beneficiaries have suffered financially and continue to endure increased cost of goods and services due to the detrimental consequences of the pandemic.
She noted that since 2020, the CNMI government has received over $800 million in federal grants, loans, and appropriations.
Specifically, the president said, the CNMI received $243 million from the Community Development Block Grant—Disaster Recovery, $93 million from the Federal Emergency Management Agency Community Disaster Loan, and $481 million from the American Rescue Plan Act of 2021.
DeLeon Guerrero said although CNMI local revenues have plummeted since March 2020, the infusion of such federal funds, and other federal funds and grants received by the government may free up Commonwealth or local funds that can be used to provide a retiree bonus for all retirees and beneficiaries.
She said the people of the Commonwealth, most especially the retirees and beneficiaries would benefit from the retiree bonus to assist their families financially and in turn help the CNMI economy.
Senate President Edith DeLeon Guerrero
