Dialogue continues on retirement solutions - KUAM.com-KUAM News: On Air. Online. On Demand.

Dialogue continues on retirement solutions

by Ken Quintanilla

Guam - The Calvo Administration hopes ongoing discussion with the Government of Guam Retirement Fund will offer solutions to address the governor's spending cuts proposal where it's both cost neutral to the Retirement Fund while still realizing savings for the government. BBMR director and former Retirement Fund director John Rios stated, "Hopefully that's the case because worst case scenario we would have to do the layoffs and maybe even some voluntary separation but what that would do is it would still affect (the Retirement Fund)."

Rios says layoffs however would be the last possible scenario.

The Administration meanwhile is waiting on word from the Retirement Fund's actuaries who are analyzing its data and looking at several options. One of the options the Administration has suggested would be instead of making the amortization of unfunded liability up to 2041, they're looking at a temporary extension and then after five years move back the maturity to 2031.

It was during last week's Retirement Fund board meeting where director Paula Blas noted that if the government was going to offer any type of early retirement program that the government's share along with the employee's share had to be paid in full, whereas amortizing the government's share was an option the fund was not willing to allow.

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