By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
FINANCE Secretary Tracy B. Norita wants the Public School System to remit $32.1 million in “unpaid retirement contributions.”
In her letter to Commissioner of Education Dr. Lawrence F. Camacho on Monday, Norita demanded repayment of deficient employer contributions to the defined benefit plan of the NMI Retirement Fund. The spreadsheet attached to the letter indicates that the unpaid contributions deducted from PSS employees spanned from October 2007 to September 2013, with amounts ranging from $26,984 to $463,869.
Citing the Settlement Agreement, Norita said that “all rights of the CNMI Retirement Fund to collect employer contributions deficient as of Aug. 6, 2013, and related costs owed by autonomous agencies and public corporations were assigned to the CNMI government.”
She informed Camacho that PSS has been identified as having an outstanding balance related to employer contributions not made on behalf of employees. Based on Finance’s records, the balance that remains outstanding is $32.1 million.
Norita demanded that PSS remit the payment in full within 30 days. She warned that failure to remit payment by the due date may result in further administrative or legal action to recover the funds owed to the CNMI government.
In a statement to Variety, Commissioner Camacho said:
“The Public School System is currently reviewing the letter demand received from the Office of the Secretary of the Department of Finance. We have consistently remitted employer contributions as required; nonetheless, we are carefully reviewing our records, as the information and itemized lists referenced date back over a decade.”
Camacho added, “We will collaborate closely with our team, as well as with our counterparts at the Department of Finance and the Retirement Fund, to ensure clarity and to address this matter responsibly. Further information will be provided as it becomes available.”
Variety learned that two other autonomous agencies and government corporations also received a notice from Finance.
According to officials interviewed on condition of anonymity, the lists attached to the notice did not specifically identify employees by name. Instead, the documentation referenced only generalized pay periods.
“This is surprising to us. Does this mean we didn’t pay for an entire pay period — for example, an entire year’s worth of employer contributions, which does not match our records?” an official asked.
Another source commented, “I think both Finance and the Retirement Fund need to review their system [JD Edwards] before issuing this demand letter. A proper reconciliation of records is necessary, and our documentation tells a different story.”
The agencies will call for a thorough comparison of records before any further action is taken.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
