Fund warns employees on disability coverage

The NMI Retirement Fund has warned employees that both local and federal laws apply in claiming disability coverage with the pension fund.

Fund administrator Mark A. Aguon, in a memorandum to all department and activity heads on Friday, disclosed that certain individuals are claiming some form of disability to receive monies from the Retirement Fund.

However, employees who withdraw their employee contributions from the Fund divest themselves of any interest they have in the retirement agency, including the disability coverage, Aguon said.

He explained that local law mandates that the employer provides treatment, care, and vocational rehabilitation services, while the Americans with Disability Act also requires the employer to make reasonable accommodations for disabled employees to include light duty, if necessary.

Aguon said human resources offices are encouraged to make employees aware of the applicability of these federal laws to their personnel.

He also disclosed that the U.S. Social Security Administration provides supplemental security income to disabled individuals under the age of 65. Popularly called the Welfare Reform Act of 1996, Aguon said the same law is applicable to the CNMI through the Covenant.

“Individuals asserting a disability interest from the Retirement Fund must also comply with applicable Commonwealth law which the Fund vigorously upholds,” Aguon said in the memorandum, adding that local employees should also be informed of their inclusion in this federal benefit program.

The administrator said that employees’ withdrawals of their contributions from the Fund have implications for the employees which are far from the instant availability of the funds received.

“The Retirement Fund is a pension fund based on the annuity received from the employee and employer. Employer’s failures to remit their fair share of their contribution serve to diminish their employees’ interest in their annuity,” he explained.

He said annuity is a shared obligation of both the employer and employee.

“The Retirement Fund is a co-shared annuity pension fund rather than a welfare fund,” Aguon said, adding that employees whose employment relationship is funded—in part or in whole—by federal funds do have the option to contact the proper federal authorities.