“It’s very alarming that we continue to see an increase in the size of government despite the hiring freeze,” Fund Chairman Juan T. Guerrero told the senators in a recent meeting. “This only means that somebody is still hiring.”
Records showed that the Fund’s defined contribution plan has 638 members. Of this figure, 157 transferred from the old defined benefit plan.
According to the Fund, as of May 31, 2008, 481 employees had joined the new plan. These are personnel hired after April 1, 2007.
“The number has gone up substantially and as much as we want to be sympathetic, by looking at the data and figures there’s something wrong in the government and lawmakers should seriously look into it,” Guerrero told the senators.
Since 2001, the central government has failed to remit its employer contributions to the Fund, now amounting to $164 million, including penalties and interest.
There are approximately 60 to 70 government employees who retire each year with a minimum retirement benefit of $6,000 per person.
The Fund said it has to withdraw approximately $40 million to $45 million from its investment yearly to pay the retirement benefits.
“If this will continue, we’re cutting short the Fund’s lifeline,” Guerrero said.
The Fund’s consultants, he added, told them that next year will be a difficult year for the agency’s investments in the stock market due to the growing economic uncertainty in the U.S.
Sen. Maria T. Pangelinan, D-D-Saipan, said she will look into the status of the “freeze hiring” policy of the government.
“I would really advocate for a real and strict freeze hiring policy,” she said.
