The Retirement Fund temporarily suspended their special retirement benefits this month because the Department of Finance didn’t remit funds.
On Monday, the governor held a closed-door meeting with Speaker Arnold I. Palacios, R-Saipan, and Senate President Pete P. Reyes, R-Saipan, to discuss the issue.
Government records showed that as of last year the Retirement Fund was paying annuities to former Govs. Carlos S. Camacho and Pedro P. Tenorio, and to former Lt. Govs. Jesus C. Borja, Jesus R. Sablan and Diego T. Benavente.
“The meeting was about the annuity for former governors and lt. governors. They haven’t received their fourth quarter (July 1 to Sept. 30, 2008) funds and they were concerned,” Palacios told this reporter.
He said the governor vowed to address the issue which will cost the cash-strapped government at least $45,000.
According to the Retirement Fund’s 2006 Financial Statement, the semi-monthly pensions of more than 2,000 government retirees, including former governors and lt. governors, cost taxpayers $58.8 million every year.
However, the government remits only $26.77 million for its contributions to the local pension program on the average every year, thus the Retirement Fund incurs at least $31.43 million shortfall in pension funds each year.
The Retirement Fund uses the government’s regular remittances to fund pension checks.
Some retired lowly paid public servants get just over $6,000 a year in pension while those in the highest positions, including the judicial officials, each receive about $100,000 for their annual annuities.
