Fund asks Legislature to scrap $1.6M subsistence allowance

Guerrero said the money will have positive impact on the Fund’s  finances.

The cash-strapped government owes the Fund more than $100 million in unpaid contributions, excluding the unfunded liabilities that are in excess of $500 million.

Government records show that the Superior Court spends $37,800 annually for the housing and subsistence allowance of some staff members while the Supreme Court spends $15,600 for the same purpose.

The Law Revision Commission and the judiciary’s administrative division separately spend $4,800 and $3,000 annually for their staff’ housing and subsistence allowance.

The Department of Public Health spends $1.55 million a year for the allowances of its doctors, nurses and other medical personnel, who by CNMI standard, are among the highest paid in the commonwealth.

“Government off-island employees are paid $600 a month if they are unmarried with no children and $800 with dependents. It is inconceivable that the Legislature would allow such lavish expenditures for a few government employees when the entire government pension program is on the verge of collapsing,” Guerrero told the Legislature in a letter sent last month.

He said the housing and subsistence allowance are paid pursuant to Office of Personnel and Management regulations.

“In other words, the government has expended millions of dollars over the years on a regulation while ignoring laws enacted to ensure the Fund is properly funded,” the Fund chairman said.

“The Fund urgently requests that all housing allowances to all government agencies be ceased immediately and the $1,611,200, and more, appropriated for the payment of delinquent employer contribution as well as all other government obligations to the Fund,” he added.

 

 

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