Asked on the impact of the adoption of 60.8686 percent employer contribution rate to CDA, its executive director Manuel Sablan told Variety, “It’s about $85,000.”
Sablan said it was a major increase compared to what the agency was previously remitting to the Fund.
Asked if it were a significant portion of their fiscal year 2012 budget, Sablan said it’s a considerable amount of money.
CDA’s fiscal year 2012 budget is $1.1 million.
In related news, CDA, along with the Northern Marianas Housing Corp., the Commonwealth Utilities Corp. and the Commonwealth Ports Authority separately filed a motion to intervene in the Fund lawsuit against the government as a result of the newly adopted employer contribution rate.
On June 27, agencies received a memorandum from the Fund stating that a new employer contribution rate would be adopted on the first day of the new fiscal year.
Effective Oct. 1, the new rate would be 60.8686 percent, a close to 100 percent increase from the fiscal year 2010 rate of 37.3909 percent.
The new rate was based on the actuarial study commissioned by the Fund.
