By Bryan Manabat
bryan@mvariety.com
Variety News Staff
A DECADE-LONG audit of government retirement benefits uncovered more than $1.49 million in overpayments and flagged hundreds of member files, according to a supplemental report filed by NMI Settlement Fund Trustee Joyce C.H. Tang.
The report, submitted Nov. 1 in federal court, details the results of 783 completed audits covering fiscal years 2015 through 2025. Of those, 276 member files were flagged for potential overpayments, while 124 were flagged for possible underpayments totaling $330,526.
Tang said outdated records, limited staffing, and delays in receiving documentation from government agencies have slowed the audit process. Each audit can take anywhere from eight hours to three months to complete.
Among the 85 completed audits of flagged files, 47 confirmed overpayments and three identified underpayments. Several cases remain under legal review or pending appeal, particularly those involving disputed overtime calculations.
The trustee is working with agencies including the Public School System and Commonwealth Healthcare Corporation to improve access to employment records. Efforts are also underway to hire additional auditors and collect missing documentation from active members.
Previously, designated Judge Frances Tydingco-Gatewood of the District Court for the Northern Mariana Islands ordered Gov. David M. Apatang and CNMI Secretary of Finance Tracy Norita to personally appear at a status hearing on Dec. 10 at 10 a.m. regarding the Fund.
The governor and the Finance secretary are expected to provide updates on the government’s compliance with its annual payment obligations and any obstacles to fulfilling them.
The judge also directed the Settlement Fund trustee to file a status report by Dec. 3, and to submit the Nov. 1 supplemental report addressing concerns raised during the last hearing — including the internal audit of member files.
“Some members of the Class also expressed concerns about the audit process,” Judge Tydingco-Gatewood noted.
Background
In 2009, retiree Betty Johnson sued the CNMI government for failing to remit required payments to the NMI Retirement Fund since 2005, warning the pension fund would become insolvent by June 2014.
In September 2013, the parties reached a settlement, and the federal court approved a $779 million consent judgment to ensure the government met its obligations to the Settlement Fund. The Fund was created by the federal court, and Tang was appointed trustee on Sept. 25, 2013.
Last January, Tang reported that the CNMI government made a $31.3 million lump sum payment to the Fund for fiscal year 2025, using a loan from the Bank of Guam.
Bryan Manabat was a liberal arts student of Northern Marianas College where he also studied criminal justice. He is the recipient of the NMI Humanities Award as an Outstanding Teacher (Non-Classroom) in 2013, and has worked for the CNMI Motheread/Fatheread Literacy Program as lead facilitator.
