Rep. Ralph DLG Torres, R-Saipan and author of House Bill 16-145, said public servants who are eligible to retire shouldn’t be punished for the government’s financial mess.
The Retirement Fund is no longer processing applications for retirement benefits unless the employees’ government employers have fully paid their contributions to the local pension system.
The cash-strapped government suspended its contributions to the Fund during fiscal years 2006 and 2007, and this has affected the employees who now want to retire.
Torres said his bill should address the concerns of recently retired government employees and future retirees.
He said at least six retired public servants have yet to receive their benefits.
“They shouldn’t be punished for the faults of the government,” he told Variety in an interview.
“The Retirement Fund’s policy to suspend all retirement applications and the commonwealth government’s inability to pay its employer contributions are impairing the accrued benefits of the members of the Retirement Fund,” he added.
His bill aims to mandate all government agencies, including public corporations, autonomous agencies and offices, to prioritize paying their share of the retirement contributions of their employees who are eligible to retire.
Those eligible to retire must file an application for service retirement annuity within 30 days once House Bill 16-145 becomes law.
“Eligible government employees have the right to retire from government service at the time of their choosing, not at the time the government decides to pay its employer contributions to the Retirement Fund,” said Torres.
