23 May 2012

CNMI retirement fund wants wrongly allocated benefits paid back

3:17 pm on 23 May 2012

The Northern Marianas Retirement Fund is trying to recoup an estimated five million US dollars in overpayments to 120 retirees arising from the agency''s incorrect application of a law before 2001.

However the affected retirees are planning to meet tomorrow to discuss a possible class action suit against the Fund.

The Fund wrote to the retirees earlier this month.

It asked a former police officer, Frederick Ngeskabei, to return nearly a quarter of a million dollars by having up to 50 percent cut from his bi-monthly pension until that amount is recovered.

Another former police officer, Antonio Kiyoshi, was asked to pay back 93,000 dollars.

Mr Kiyoshi says the Fund should not punish retirees for its own mistakes.

The Fund says the 120 members has been given benefits that took overtime and compensatory time into consideration in violation of the rules.