“I just want to retire but not under the defined contribution plan,” Atalig said.
On June 6, he said Villagomez wrote a letter advising Department of Public Works Secretary Martin C. Sablan to enroll him, Atalig, in the “defined contribution plan” of the Retirement Fund.
Atalig is now DPW’s public information officer, the post he also held under the Babauta administration.
“This is the requirement because Mr. Atalig previously terminated his membership in the ‘defined benefit plan’ by refunding his contributions,” Villagomez’s letter to Sablan said.
Villagomez also informed Sablan about the Fund’s letter to Atalig on March 4, 2011 stating that DPW was required to enroll Atalig in the defined contribution plan when “he became re-employed.”
Request
Atalig’s legal counsel Ramon K. Quichocho, in a letter June 13, told Villagomez about Atalig’s three requests: “to stop interfering with his rights under law, to stop harassing him with your unlawful interpretation of the law, and to stop, in any way, engaging in the unlawful deprivation of Atalig’s right.
Quichocho told Villagomez that if he continues such “unfair, unlawful, and irresponsible acts,” Atalig will bring a claim, among other causes of action, against the Fund official.
“Mr. Atalig has become very suspicious that, on the one hand, you are trying your best to protect Merryll Lynch, who has allegedly harmed the Retirement Fund, yet on the other hand, you are going out of your way to harm certain members of the Retirement Fund under your illegal interpretation of the law,” Quichocho said.
Citing the defined benefit plan program’s growing unfunded liability, the government enacted P.L. 15-13 in 2006. That law closed the defined benefit plan program to new members and created a defined contribution plan as the new CNMI government’s employee retirement program.
Enroll
In an interview, Atalig said he was “reinstated” to the post and not re-employed, adding that re-employment has to go to the basic process of employment.
But Villagomez insisted that Atalig should be enrolled in the defined contribution plan, and even sent a check for $249.42 representing Atalig’s contribution that DPW remitted to the Fund.
Atalig rejected the check.
He said prior to his termination shortly after the inauguration of the Fitial administration, he was under “class 1 defined benefit plan” — health, life and retirement.
Under the defined benefit plan, the payment to a retiree is in the form of a life annuity with a cost of living increase each year.
During the years of his employment with the CNMI government, Atalig said he was enrolled and continuously contributed to the Fund until the day he was terminated on March 6, 2006.
“My termination was without cause, notice nor ever given an opportunity to be heard which certainly violated my due process rights, as determined by the court,” he said.
On June 16, 2006, he said he withdrew his Fund contributions.
However, he said when he returned to work he requested to continue to be under “class 1 defined benefit plan.”
But Villagomez said “there is no provision under the law that allows class 1 members who withdrew their contributions to become members again.”
He added, “The Fund is bound by the law and would violate it by reinstating your membership in the defined benefit plan as a class 1 member.”
Atalig said he successfully claimed for wrongful termination of employment.
But Villagomez said the Fund was not party to the suit, and “did not have an opportunity to object or be heard; and accordingly is not subject to [the court] judgment and order against DPW and the Office of Personnel Management.”
When the court ordered DPW to reinstate Atalig it was an obligation on the part of DPW and not the Fund, Villagomez said.
Appeal
Through his legal counsel Quichocho, Atalig made an appeal to the board of trustees of the Retirement Fund.
Quichocho said Atalig is not subject to P.L. 15-13 since his client’s refund application was approved before the effective date of the law.
The defined contribution plan was made effective January 1, 2007, the legal counsel said.
He added that Atalig is not subject to P.L. 15-13 because the defined contribution plan is a retirement program offered by the commonwealth to employees whose first time CNMI government employment commenced on or after Jan. 1, 2007.
