VI Government Pension Plan Celebrates 50th Anniversary

VI Government Pension Plan Celebrates 50th Anniversary

On October 1, 2009 about two hundred people gathered at the Government Employees’ Retirement System (GERS) courtyard to celebrate the 50th anniversary of the local government pension system. Attendees included Board members, GERS staff, VI Senators, representatives from the Governor’s Cabinet, current and retired government employees, along with an AARP representative.

Hosted by Alda Monsanto, a former GERS Chairperson, the program featured the current Administrator, Mr. Austin Nibbs; Board Chairman, Vincent Liger; and Mr. Angel Dawson, Commissioner of Finance and Acting VI Governor while Governor DeJongh and Lt. Governor Francis were off island.

Dawson stated he was honored to have been able, as the Acting Governor, to sign Act 8009 yesterday into law. Act 8009 extends the Health and Life insurance program for all current and retired government employees.

“Living is easy – but the payments are hard,” stated Dawson. “Without GERS retirees would not be able to live with dignity and security.  Act 479 created GERS in 1959 so today it turns 50 and can qualify for AARP membership.  But it needs a little ‘TLC’ ”. The shortfall in contributions, the downward spiral in the market, and the unfunded liability are problems that need immediate attention.

Referring to the Governor’s July GERS Summit, Issues and Initiatives, Dawson explained that a brain trust of community stakeholders has been formed to rally support to save GERS. Dawson referred to the definition of retirement as the act of drawing back or withdrawing and promised that under the DeJongh administration there would be a GERS reform and revitalization effort “for which we will not withdraw, for which we will not retire.”

Representing the VI Legislature, Senate Vice President Michael Thurland (D) praised the GERS Board and thanked the investment managers who work to develop the system. He indicated that despite the unprecedented recession earlier this year, GERS, partly due to the investment managers, actually gained earnings as a result of their management.

Looking to the future, Thurland indicated that in light of the number of individuals who plan to retire in January 2010, GERS must develop innovative strategies to infuse capital into the system. “What the system is facing in relation to retirees in January is something that the Board will have to make key decisions with respect to making annuity payments.”

The activities were broadcast by two television stations and a live radio broadcast.  Chairman Liger ended with a plea on behalf of GERS. “There is no greater threat to the financial stability of GERS than the unfunded liability.  Solutions must be found to ensure that the system will be secure for the current and future good of the VI.”  

AARP Virgin Islands will remain an active advocate and watchdog of the territory’s vital pension system.