From left, Commonwealth Retirees Association board member Sue Babauta; vice president Robert Sablan; secretary Mario Taitano; and president Juan I. Tenorio during a press conference at the Carolinian Village pavilion on Thursday.
Retiree Eusebio Borja speaks during a press conference.
THE Commonwealth Retirees Association has reorganized to “fight for their pension.”
CRA’s new officers are former Rep. Juan I. Tenorio, president; Robert Sablan, vice president; former Rep. Mario Taitano, secretary; and Sue Babauta, board member.
During a press conference at the Carolinian Village pavilion in Garapan on Thursday, the retirees said they have been receiving notices of overpayment from NMI Settlement Fund Administrator Lilian Pangelinan, informing them of the adjustment to their pension “to reflect the correct amount.”
They said they have been asked to return the overpayment of their pension derived from the overtime pay they received during their active employment in the government.
One of the retirees, Eusebio C. Borja, is being asked to return $117,000 in “overpayment.” He served as the operation foreman of the Commonwealth Utilities Corp., and his workplace was the power plant.
“How dare them! They are going to take that away from my pocket,” he said referring to the Settlement Fund. “I worked for the government while everybody was sleeping. My priority was to make sure the hospital had power. I had to work from midnight to morning. I worked 120 hours every two weeks. I am angry. I have a house to pay, I have debts to pay,” he said.
Former Marianas High School Principal Vic Cepeda said he returned over $2,700 to the Settlement Fund after he was asked to do so in July. But he said he disagrees with the Settlement Fund, and will continue to “fight” for his pension.
Another retiree, Ed Benjamin, is being asked to return $120,000.
In a notice of overpayment, the Fund administrator cited the adverse decision letter issued by the former NMI Retirement Fund on May 7, 2012, notifying each retiree of the overpayment of benefit they had received over the years. The affected retirees were informed that an internal audit revealed they were “inappropriately given service credit instead of vesting credit on your accumulated OT/CT hours, in violation of 1 CMC Section 8333,” referring to Public Law 8-24 as amended by Public Law 13-60.
P.L. 8-24 included overtime pay in the calculation of retirees’ benefit while P.L. 13-60 repealed it.
During their press conference on Thursday, Taitano said P.L. 13-60 does not intend to repeal P.L. 8-24’s provision pertaining to the inclusion of overtime pay in the calculation of the retirees’ pension. He highlighted P.L. 13-60’s provision enumerating the benefits that it intended to repeal:
1) The 3% bonus for certain elected officials.
2) Benefits for boards and commissions members.
3) Vesting credits for education service, military service, compensatory time and unused sick leave.
4) Prior service vesting credit.
Taitano said it is only appropriate and fair that retirees receive their benefits based on the overtime hours they worked. P.L. 8-24, he said, allowed them to have their OT work hours calculated into their benefits.
He said they are “gravely concerned.” A lot of families are affected, he added. He said a retiree’s estate is being “taken” to repay the “overpayment” even after the retiree and his wife have passed away.
Tenorio said he was not among the retirees who received a notice of overpayment, but he believes it is his duty to help fellow retirees and their families. “I am here to support and help them find a resolution that could [prevent] hardship,” he said.
He is waiting for the Settlement Fund to provide him a list of the affected retirees.
Sablan said they reorganized CRA so they can have a unified voice to raise their concerns and “fight for their rights.”
Like Tenorio, Babauta said she has not received a notice from the Settlement Fund herself, but she knows of a family member who has.
Taitano said each affected retiree who has submitted a complaint was given a schedule for an arbitration hearing with the Settlement Fund.
