The move to do away with printing checks, which the Fund hopes to implement on April 1, 2012, will save the Fund $5,000 in postage a year, Fund Administrator Richard Villagomez said.
He said there are about 500 checks issued every 15th and last day of the month.
Fund legal counsel Carolyn Kern, who presented three proposed changes to the Fund regulations, said originally the proposal was to have the change implemented by Jan. 1, 2012.
“We didn’t want the people to feel panicked or rushed,” she said.
With the proposed paperless transaction taking effect in April 2012, Kern said the retirees will be given enough time to set up their accounts and the Fund will have time to publish the change in the newspapers and put reminders in the pay envelopes of the retirees.
Kern also said the Fund will keep the retirees’ money until the retirees provide their bank accounts where the Fund transfer the payout.
Fund Chairman Sixto Igisomar instructed the Fund administration to work with the Commonwealth Retirement Association. “Find a way to join their meeting and make sure you bring this up. We need to help them [the retirees] move to it,” he said.
Igisomar said the Fund may gather the retirees at the multi-purpose center and help them go through these changes and even invite bank representatives to help the retirees and beneficiaries open their respective bank accounts.
The paperless transaction will obviate the need to print checks that sometimes get lost in the mail and save the Fund some administrative costs.
On Thursday, the Fund board also resolved to no longer entertain requests for early release of checks.
Legal counsel Carolyn M. Kern presented the changes to the Fund regulations including the issuance of pension checks strictly on the 15th and last day of the month.
According to Kern, the practice by some to have their checks released earlier is time consuming and unfair to other pensioners.
She told the board that one of the suggestions in streamlining operations was for the Fund to have a blanket rule that there would be no early release of checks.
“Everyone is paid on the same day,” Kern said referring to the proposed issuance dates.
The Fund board at the same time authorized the assessment of a $25 fee to request changing their bank account number among other pertinent entries in their Fund records.
Kern told the trustees that there are beneficiaries or retirees who switch their accounts every pay period and this takes a toll on the operations.
She also said sometimes changes are necessary especially when retirees or beneficiaries relocate, among other valid reasons. However, she said every year the Fund circulates the annual update sheet which allows the retirees and beneficiaries to change their account.
Kern said the proposed changes to the regulations would have to be published in the Commonwealth Register in November and be uploaded to the website for comments. Then the Fund will accept comments for 30 days, and review comments prior to adopting the regulations.
