by Sabrina Salas Matanane

Guam - There's important news for GovGuam employees enrolled in the Defined Contribution Plan, as an audit released today reveals that as a result of low average balances DC members will not have enough saved to generate a reliable stream of retirement income to support their basic needs, allow them to maintain a comfortable standard of living and last their lifetime. The Retirement Fund board is considering alternative plan designs which will require legislative action.

The Guam OPA report did note that the GovGuam Retirement Fund closed FY2011 with a $13 million increase in net assets for the DC plan, but an $80.6 million decrease in net assets for the Defined Benefit Plan. The unfunded liability in the meantime reached $1.5 billion in FY2011, which is an ongoing problem for the Fund. For the 6th consecutive year the fund as rendered a clean audit.