In a special session called by Gov. Charles W. Turnbull, the Legislature Friday unanimously approved a bill to appropriate $2.9 million interest earned on bond proceeds to the Judges Pension Fund and the Governors and Lieutenant Governors Retirement Fund.
The interest, which is from last year's $300 bond issue, will replenish the funds which, the administration discovered, are depleted.
Though the vote was quick and unanimous, the session was anything but, as, one after another, discrepancies were brought to light between the Finance Department and the Government Employees Retirement System.
However, these discrepancies took back seat to the revelation that the judge's and governor and lieutenant governor's pensions had not been paid since April. Then, under questioning by Sen. Lorraine Berry, it was revealed that the recipients had not even been notified.
Testifying were Bernice Turnbull, finance commissioner, Willis C. Todman, GERS acting director, and Alphonse Nibbs, GERS legal counsel.
Turnbull said both funds have a negative balance: The Governors and Lieutenant Governors Fund has a $1,304,374 deficit, and the Judges Pension Fund has an $805,147 deficit. Including payments through fiscal year 2000, the minimum appropriation is $2,417,178, however the administration is asking for $2,920,000, leaving an excess of $502,821. This excess did not sit well with the senators, who expressed concern as to what would be done with it.
In fact very little sat well with the lawmakers as the testifiers bandied back and forth about who was responsible for which fund. Todman stated that GERS no longer functions as a constructive trustee to pay over contributions received from the Finance commissioner.
However, he said, contributions "in contravention of statutory directives," had become commingled with general membership contributions "through error or omission, or by administrative fiat, the statutory directive was never complied with."
Both Todman and Turnbull explained that their agencies were in the process of reconciling accounts. Under questioning from Sens. Berry, Vargrave Richards and Almando "Rocky"Liburd, Turnbull admitted she personally had stopped the retirement payments in April.
Liburd asked, "How could you stop any pension payments? What authority do you have?" Turnbull replied that the Attorney General had said "no certifying officer can issue payments out of a negative balance." The negative balances were discovered in April.
Berry asked Turnbull if the recipients had been notified of the suddenly stopped payments. The payments go by direct deposit to the payees. Turnbull said, "No." Berry said, "Don't you think that would have been the decent thing to do?" Turnbull replied, "Yes, that would have been decent."
Berry asked Turnbull about the 9 percent interest the pensions are supposed to accumulate.
Turnbull said she would look into the suggestion, to which Berry replied, "It's the law – it's not a suggestion." Turnbull said the interest had never been implemented, referring, as she did throughout the session, to her relatively brief tenure. "I have no control over what transpired before."
Berry continued to question Turnbull: "Do you know that with the checks being stopped, health insurance is automatically stopped, as it is deducted from the checks?" "That's true," said Turnbull. "So you see what's happening to us," Berry said in obvious frustration.
Liburd addressed Turnbull, "God forbid, any of them should have gotten sick with no insurance. You showed no compassion at all about not notifying them." He continued, "You bluntly said 'no' to Senator Berry. That's disrespect." "I spoke to many of them," Turnbull said. "But no letter," said Liburd.
Turnbull countered with. "I invite you to run this department, it seems that's what you want to do, and you have your spies." "It's not about spies," Liburd said, "people come to the Legislature complaining about the treatment they get from you." Liburd also asked Turnbull if former Governor Roy L. Schneider's checks had been stopped before April. "I won't discuss that," Turnbull said.
All the senators lamented on more than one occasion throughout the session that "it's unfortunate we have to be here doing this today." "What does it say about us as a community?" they, as one, asked.
Richards said that regardless of party affiliations, "we have a moral, legal and ethical responsibility to those who have served this territory with a high level of responsibility." He said he hoped payment would be immediate after the bill is passed.
Turnbull said, "the documentation is in place. If the bill is passed, the checks will be sent out Thursday." She confirmed, under questioning from Sen. Violet Anne Golden, that the next check would include the missed payments, and bring the accounts up to date.
In an opinion issued on the bill, Post-Auditor Campbell Rone Malone stated that it appeared there has been no recent appropriation to the funds from the Legislature. He said, "however, officials continue over the years to certify and make payments, obviously in flagrant violation of the law, to the tune of a deficit . . . in excess of $2.2 million." "Incredible, " he said, "but . . . business as usual." The funds being tapped for this proposal, however, do exist, Campbell concluded.
Those affected by the pensions are former Govs. Juan Luis, Alexander Farrelly and Roy Schneider; former Lt. Govs. Derek Hodge and Kenneth Mapp; and former Territorial Court Judges Eileen Peterson Henry Feurerzeig and Verne Hodge.
Voting on the measure were Sens. Berry, Richards, Liburd, Donald "Ducks" Cole, Roosevelt David, Adlah "Foncie" Donastorg, George Goodwin, Norman Jn Baptiste, Allie-Allison Petrus, Gregory Bennerson and David Jones. Sens. Judy Gomez, Adelbert "Bert" Bryan and Alicia "Chucky" Hansen were absent, and Golden was absent for the vote.
