Aguon made the statement in his comments submitted to the House Ways and Means Committee about House Bill 16-68.
“It is encouraging that our elected officials are taking a proactive view of the Retirement Fund but it is also somewhat troubling that there are still some remnants of the outdated mindset that views the Fund as a tool to reward their supporters,” Aguon said.
Offered by House Floor Leader Joseph N. Camacho, R-Saipan, H.B. 16-68 was amended in the Senate.
The amendment deals with the recomputation of the retirement benefits of retirees based on their re-employment services.
Aguon said the Fund is concerned about an amendment that will make it mandatory for the agency to recompute the retirement benefits of retirees who were re-employed.
“This proposed amendment will enhance the benefits of the members, thereby threatening the fiscal solvency of the Fund as well as the government. Additionally, it increases the benefits offered under the Defined Benefit Plan, without the statutorily required referendum, whose requirements are painstakingly detailed under Section 3 of Public Law 15-70,” Aguon said and noted that such provision be stricken out from H.B. 16-68.
