House OKs bill to allocate $5.2M to pay for gov’t retirees’ 25% pension

The House of Representatives fast-tracked the passage Thursday of a bill that will appropriate $5.2 million of the dividends collected by the Commonwealth Economic Development Authority from the Commonwealth Utilities Corp. for the payment of 25% retirees’ pension for all government retirees.

With all 14 House members present at the session voting “yes,” House Bill 23-104, House Draft 1 now goes to the Senate for action.

Rep. Joseph A. Flores (Ind-Saipan) was not in the chamber when the voting took place. Reps. Ralph N. Yumul (Ind-Saipan), John Paul P. Sablan (Ind-Saipan), Denita K. Yangetmai (D-Saipan), Roy Christopher A. Ada (R-Saipan), and Thomas John D. Manglona (R-Saipan) were absent, but excused from the session.

Rep. Blas Jonathan T. Attao (Ind-Saipan) only introduced the bill that day. Many other representatives co-sponsored the legislation. No one objected to Attao’s request to place the bill on the day’s calendar for action.

Before the voting, Attao stated that if they don’t act on this legislation, 25% of retirees’ pension will be reduced, if not suspended, by April 15, 2024.

“That’s why we need this legislation passed. And we hope that when it gets to the Senate that they do the same thing,” Attao said.

Attao also pointed out that these CEDA monies are actually local monies that belong to the Third Senatorial District, or Saipan and Northern Islands.

He disclosed that two weeks ago, both the House and Senate met with the administration, which informed them that the CNMI is in bad financial straits.

A lot of the retirees’ 25% pension are being paid out using the reprogramming authority of the administration. Unfortunately, the funds are being depleted quickly, Attao said.

On top of that, he said, the administration still needs to satisfy the 25% constitutional obligation to the Public School System and the payment for current government employees.

Attao said a lot of government employees have already taken a 10-hour work reduction in their pay, which is more than 10% of their total pay.

He said during this meeting with the administration, they had to make a decision from the Legislature’s end.

“We have to find funds to assist the administration in its general obligations to its people, not just to the retirees but to the current employees of the government and also to address the vendors that need to be paid,” Attao pointed out.

He said the CNMI is now receiving federal reimbursements for whatever money the CNMI used during the COVID-19 pandemic or after Super Typhoon Yutu, but those monies are just replenishing the money that were stripped from certain accounts.

He said the administration can actually use its powers and do an across-the-board work-hour cut right now if it chooses to do so, but with this legislation they are giving lawmakers a piece of that authority to make sure that they assist in producing some sort of financial stability—in this case the retirees 25%—so that the administration can concentrate its obligation to its current employees and its other obligations.

Attao said House Speaker Edmund S. Villagomez (Ind-Saipan), along with Senate President Edith E. DeLeon Guerrero (D-Saipan) in a joint letter with the administration has already sent out to the public and to the Legislature that they need to make some decisions and drastic changes.

Attao said this legislation will assist and it will deter any across-the-board work-hour cut, maybe smaller in the future.

“But we need to help in making sure that our current employees [work hours] are also not cut additionally,” he said.

Attao conceded that it hurts for the Third Senatorial District to take away monies that can be used to build utilities infrastructure in the Third Senatorial District, but by doing this, they will be able to assist the First and Second Senatorial Districts (Rota and Tinian, respectively).

“We want to help the retirees and, at the same time, we don’t want to cut further our government employees’ [work hours],” Attao said.

He said with this legislation means the Third Senatorial District will make the sacrifice so that they can make sure that the retirees receive their full pensions.

“We need to get this out and get to the governor’s desk so that they can move the funds to the Settlement Funds to pay the 25%,” Attao said.

House Vice Speaker Rep. Joel Camacho (Ind-Saipan) said the retirees are worried that the deadline for April 15 is impending.

Camacho urged the Senate to fast-track this bill as it is going to help the retirees and the government this fiscal year.