RETIREES and future retirees need to be on full alert. Gov. Calvo and the Spending Cuts Task Force are trying to screw with your retirement.
In order to avoid making the tough decisions, Gov. Calvo and the Spending Cuts Task Force propose to raid the Retirement Fund in two ways – by encouraging a mass exodus of government employees by authorizing an "early out," AND by reducing contributions to the Fund by increasing the amortization period of the Unfunded Liability by 10 years.
The last "early out retirement incentive" in 1999 increased the Government of Guam Retirement Fund’s Unfunded Liability by $100 million. The last early out damaged the Fund even though employees were required to "buy" additional years of service credit, as would be the case with the new proposed early out.
The latest Government of Guam Retirement Fund Actuarial Study – the report dated Sept. 30, 2011 – found that 43.49 percent of the Fund’s obligations were funded, down from 54.01 percent on Sept. 30, 2007. This compares unfavorably to the lowest ratio of assets to liabilities of any state, Rhode Island, at 49 percent.
Paula Blas, administrator of the Fund, has already announced that the Fund's board of trustees will oppose the early out, and the board is obliged to oppose the increase in amortization period under Judge Lamorena's rulings in the court case “Odelia Bautista v. Gerald S.A. Perez,” CV 1848-01. Legislation effecting either would degrade the actuarial soundness of the Fund, and pursuant to “Odelia Bautista,” must be opposed in court by the Fund.
Retirees and future retirees should make their opposition to these proposals known to their legislators, as well as the Fund’s board of trustees, which caved in to Gov. Calvo's importuning and allowed a raid on the Fund last year.
Joseph A. Guthrie,
Guam
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Letter to the Editor 
Attention GovGuam retirees!
Attention GovGuam retirees!
Attention GovGuam retirees!
- Thursday, 26 Jul 2012 03:30am
- LETTER TO THE EDITOR
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