By Gemma Q. Casas
Variety News Staff

RETIREMENT Fund Administrator Mark Aguon says they will now refer all applications for government retirement to their board of trustees.
In a one-page memo distributed to various government agencies, Aguon said the board adopted the new policy at its April 17 meeting.
“Applications for retirement not fully paid in the legally required share of contributions (employer and employee) shall be processed according to a formula based upon the pro-rata amount of contributions made to the Fund. This is pursuant to a duly adopted resolution of the board of trustees,” said Aguon.
Government workers who have been with the local pension system up to 10 years can withdraw their contributions.
The central government is legally allowed to suspend paying its regular monthly contributions to the pension plan of its employees from last fiscal year through the end of fiscal year 2007 in September this year under Public Law 15-15.
More than 2,000 retired government employees receiving regular annuities belong to the Defined Benefit, or DB plan.
The DB plan, however, has unfunded liabilities of approximately $400 million to fully cover the lifetime pensions of current and future retirees.
The DB plan members are also separated into two membership classes based on the dates when the workers were employed.
Class II members are those who were employed before or up May 6, 1989.
Class I members are those who were hired from May 7, 1989 and beyond.
However, effective this month, new hires will be included in the Defined Contribution, or DC, plan the CNMI government’s version of the private sector’s 401-K plan which is more self-sustaining.