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Senators Told No Magic Bullet for V.I. Government Pension
http://stthomassource.com/content/news/local-news/2014/05/17/senators-told-no-magic-bullet-vi-government-pensionSenators Told No Magic Bullet for V.I. Government Pension
By Bill Kossler — May 17, 2014
As senators and retirees sought softer ways to save the Government Employee Retirement System, GERS officials and actuaries during hearings Friday poured cold water on the notions of borrowing the money or including the private sector.
Since at least the late 1990s (thank you, St, Ronnie) , every GERS administrator has urgently warned the V.I. Legislature that unfunded legislative mandates and early retirement incentives, combined with inadequate contribution rates for the pension levels, were bankrupting the system.
GERS itself proposed reforms three years ago. Last year, the governor's pension reform task force issued a report itemizing a series of recommendations and options, including small increases to employee contributions, limits on early retirement and other tweaks to the system. (See related links below)
On Tuesday, GERS Administrator Austin Nibbs testified to the Committee of the Whole that, if nothing is done, the system will have sold off all its assets and be unable to meet retiree pension payments by 2022 – or less than eight years.