Olbiil Era Kelulau (OEK-national congress) passed House Joint Resolution 11-16-3S stopping Civil Service Pension Plan from increasing government and semi-government employee contributions from 6% to 7%.
Civil Service Pension Plan Board of Trustees had issued a notice to all employees and members of the Civil Service Pension Plan that it will increase the employee and employer contributions effective October 1, 2021. The increase will be an additional 1% from an employer and 1% from an employee of the government or government agency.
In the Joint Resolution, it stated that CSPP’s decision was based on several actuarial studies in recent years to prevent the Plan’s complete insolvency but OEK has been informed by the Minister of Finance and Director of of the Bureau of Budget and Planning that they are currently working with CSPP to “develop a comprehensive legislation that will substantially reform the Pension Plan and secure its financial longevity.”
OEK in the resolution stated that any changes on the contributions should be deferred until the “comprehensive Pension Plan legislation” is introduced.
Earlier, a local retiree Mr. Isaac Bai wrote OEK Senator Inabo decrying the proposed increase. Others have posted on social media saying that an additional increase in pension contributions from their salaries will further depress their salaries that are already below basic living wages.
Under the Administrative Procedure Act Section 133, OEK can pass a resolution to void any rule or regulation adopted by an agency, provided that it does so within 120 days of the adoption of the rules.