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COLA for govt retirees increased but…
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Posted on Apr 13 2005
The NMI Retirement Fund board has raised the cost of living allowance of retirees to 2.7 percent this year, but this has not been implemented for lack of government remittances.
“It should have been effective since January but there’s no funding yet,” said Fund administrator Karl T. Reyes in an interview.
He said the NMI Fund’s board of trustees favors giving out the increase once the government turns in the necessary funds.
“The board said that, unless we receive money from Finance for this specific program, we won’t use the current income,” said Reyes.
He said the Fund expects to get the funding by end of this month in time for the scheduled payment of business gross revenues.
COLA increases are incorporated in the retirees’ pension, which is given every 15 days.
The government acknowledges that it is faced with a $113-million liability, including a $79.1 million debt in employer contributions to the Fund and another $12.6 million in other obligations owed the agency.
The Finance Department said that current outstanding balances include: $19 million for FY 2002; $23.4 million for FY 2003; $24.5 million for FY 2004; and $12.2 million so far for FY 2005.
The government shoulders 24 percent in employer contribution for government employees’ retirement. There are some 5,000 active members of the Retirement Fund.
