GERS Receives O.K. for Pension Finance Bond
By: Source: AARP.org Date Posted: 2007-02-26 18:18:42.450042-05:00
The Government Employees Retirement System (GERS) and AARP VI experienced a big win on Dec 29th when the Virgin Islands Governor signed Act 6905 into law. The law contained authorization for the Virgin Islands Government to enter into a Pension Finance Bond (PFB) agreement with the Virgin Islands Public Finance Authority. Under the authority vested by Act 6905, the government now has the authority to obtain up to $600 million to help bring the massive $1-billion unfunded liability under control.
AARP is especially pleased because it has spent over two years educating the public on the urgent need to get GERS solvent. As the sole pension program for retired Virgin Islands Government employees, GERS’s collapse would impact over 6,000 retirees and 9,000+ current employees. As part of the two-year educational campaign AARP VI worked with its partners: Advocates for the Preservation of the Retirement System (APRS), Generation Now, Inc and local unions to educate the community on this important issue.
Act 6905 has become a focal point for community advocates. Although the Act includes the authorization for the government to obtain the pension obligation bonds that will immediately pump vital capitol into the territories deeply indebted pension program, citizens are still asking legislators to re-address the law. There are other sections of the new law that have been put in place, including salary increases for government officials that have caused concern.
AARP members are still being urged to closely monitor the progress being made as Pension Finance Bond is put into place.
AARP will keep you educated on the issue.
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