GERS’ Impact on the Community

Source: AARP.org

These days everyone has serious concerns about their financial security. Due to the extreme volatility of today’s stock market, anyone who has put money into a retirement plan needs to stay informed in order to have some degree of psychological, emotional and financial security.

That’s why public meetings like the 3-day investment manager updates held by Government Employees’ Retirement System (GERS) are so important. Unfortunately few VI government retirees attend either the monthly Board meetings or the bi-annual investment manager’s meetings. Perhaps government retirees don’t understand that these are public meetings intended to keep them informed and that they have every right to attend.

Because AARP recognizes that few members attend, we routinely send a representative to all GERS meetings. Over the past four years AARP has observed the Board’s practices and closely monitored the system’s activities. We will now be providing periodic GERS updates on this website so that members who can’t attend these important meetings will know what’s happening.

We would like to begin these updates by helping members understand why AARP feels that monitoring GERS is so important to the territory.  GERS serves several functions in the Virgin Islands. It is one of the key financial factors in over 7,300 retirees’ personal budgets, and it has become a critical component in the VI’s overall economy. Each month GERS pumps $14,392,644.00 into our local economy through annuity payments to retirees. This money circulates throughout the VI when retiree’s pay for their mortgages, car payments, utility bills, doctor’s visits, purchase groceries, clothing or other goods and services. This consumer spending creates jobs that in turn reduces the VI’s unemployment rate and helps increase the numbers of working persons who pay local taxes.

GERS also provides financial help to its 10,739 current government employees via car, mortgage and personal loans. Like the money spent by retirees, the bulk of these funds remain circulating in the community further aiding our economy.

Despite the downward turn of the global economy, GERS has continued to make annuity payments to retirees as well as provide loans to its members. They have done so even though their investment portfolios, like those in other pension funds throughout the world, have sustained significant losses during this period of investment volatility. It hasn’t been easy for GERS, especially since our government has still not fulfilled its promise to arrange $600 million in bonds to bring down the debt it created for the system.

Each month GERS takes money from their investments so that retirees can receive their annuities and continue their lives without disruption.  By taking this money from investments, GERS has been reducing the amount of capital that its managers could use to generate income for GERS. This practice can’t go on forever.  Without the financial support promised two years ago by our government, GERS’ day of reckoning is inevitable.

You can learn even more about GERS’ activities and status by attending a monthly Board meeting or by regularly visiting this website.

Other Resources:

http://www.usvigers.com/