Retirement Fund, Adelup work on provision alternatives

by Ken Quintanilla

Guam - Although they testified in opposition to the governor's spending cuts bill late last month, the Government of Guam Retirement Fund stated they were willing to work with the Calvo Administration to reach some middle ground.

This Tuesday marks the end of the ten-day comment period Committee on General Government Operations chairman Vice Speaker B.J. Cruz gave both organizations to come up with alternative solutions that both could agree on relative to provisions in Bill 507. "I'm really happy about the fact that the Administration and the Retirement Fund have been open to discussions," he stated. The provisions include an early retirement program and an extension of the amortization period to pay down the unfunded liability by a decade.

The Administration and the Retirement Fund have been communicating but no word yet on what options both parties have agreed on. The Retirement Fund's actuaries are currently looking at several options and analyzing its data.  Cruz says its best for everyone to find other avenues to address the provisions adding if they're aren't replaced, the committee report will only reflect the opposing testimony.

"And so I don't know whether or not it will survive if it goes to the floor because that's the only testimony that's there," he said.

Governor Eddie Calvo had stated that its ultimately up to the Guam Legislature to take action on his spending cuts bill whether amending it or not. He adds for every dollar taken out of the equation, other options have to occur in reducing spending. Cruz says he's since offered the Retirement Fund viable alternatives through nearly a dozen measures in hopes it could help both parties come up with options.

"Hopefully whatever the Retirement Fund is willing to sell their fund members is what will go if," he said.

The committee report should be done by mid-next week when it will then be circulated and ultimately up to Speaker Judi Won Pat to call session.