Bill creates hybrid retirement system
by Nick Delgado
Guam - Legislation has been introduced that would create a new hybrid retirement system for new GovGuam employees. The measure, introduced by Senator Ben Pangelinan, was a collaborative effort with the Government of Guam Retirement Fund and according to director Paula Blas, after years of extensive analysis of all retirement plans under its purview, saw that a new type of retirement system was necessary in order to provide a post employment benefit for public sector staffers.
"What it does is when the time comes for an individual to reach age and are eligible to retire? The Fund would calculate whatever that minimum benefit would be for that individual and whatever additional retirement savings they have that would be there's to use it as they seem fit," said Blas.
She says the hybrid retirement system is designed to offer the participant minimum benefits as well as allow them to continue to manage a component of their contributions to the fund. According to Bill 453, the hybrid retirement system would require mandatory participation by all new employees hired after the end of this year with voluntary participation for those with interests in the defined contribution retirement system.
Senator Pangelinan was unavailable for comment, as he is currently off-island.