The Fund board of trustees adopted a resolution last year ordering the pension agency to stop processing applications for retirement benefits of government employees whose employers had not remitted their full contributions to the system.
The board, however, agreed to handle each retirement on a case-by-case basis.
“It is with great pleasure to report that to date, 26 government employees’ application for retirement subject to Board Resolution 08-001 have been approved because their deficient employer contributions in the total amount of $305,411.57 were paid in full. The Fund will continue processing retirement applications on a case-by-case basis,” Guerrero told Gov. Benigno R. Fitial in a letter dated Dec. 19.
Technically all government agencies, except for autonomous ones, are in arrears in their contributions to the Fund because a law was enacted in 2006 that suspends payments for the local pension system through the end of fiscal year 2007.
The administration made the move due to the government’s lack of funding.
The Retirement Fund was supposed to be paid in FY 2008 but no budget was passed.
The premium is also set at over 36 percent but the cash-strapped government said it can only pay up to 11 percent of its contributions.
Guerrero said as of Dec. 2008, 10 more candidates for retirement were on hold due to deficient employer contributions.
“There are still a number of other government employees whose applications for retirement benefits remain pending because of deficient employer contributions,” said Guerrero.
Among those whose retirement benefits have been on hold are former Judge Juan T. Lizama and former Sen. Thomas P. Villagomez.
The government must pay the Fund more than $900,000 to process their retirement.
“Each of the above mentioned government employee members and their respective employers have been advised of the deficient employer contribution and specific amounts,” said Guerrero.
