THE Spending Cuts Task Force recommendation approved by Gov. Calvo, of stretching out paying off the Retirement Fund’s unfunded liability by 10 years, and increasing the Fund’s unfunded liability by allowing up to 500 employees to retire early, begs the question: How will the Fund’s unfunded liability be paid off before the Fund runs out of money? From increased revenues generated by the Guam buildup?
The Center for Strategic International Studies (CSIS) report (released in Washington last week) indicates the foolhardiness of kicking the can down the road in respect to paying off the Fund's unfunded liability, or heaven forbid, increasing the Fund's unfunded liability, UNTIL we learn whether Congress will overturn the "sequestration" cuts already enacted into law. The CSIS report indicates that, if the sequestration cuts go into effect, ALL of the Guam buildup projects will be cancelled. If those quarterbacking Pepsi's proposed raids on the Fund are acting in good faith, which I doubt, they must be thinking that the Fund's unfunded liability can be paid off once the buildup starts. Before authorizing these latest raids on the Fund, the Legislature should at least wait until early 2013 to see if Congress overturns sequestration, allowing the buildup to occur.
However, I believe it more likely that the Spending Cuts Task Force has quietly decided that the Retirement Fund is a goner, and it is senseless to go to extraordinary lengths now to try to save something that will bite the dust eventually anyway. I also suspect that the latter conclusion has also been reached by those advancing the interests of a cohort of current retirees with a certain life expectancy. I am referring to a cohort of current retirees, and their survivors and children, who have been benefited by recent actions of the GGRF board of trustees – actions such as the health insurance bailout of 2011 and the recent increase in survivors’ benefits from 50 percent to 60 percent.
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.
Joe Guthrie,
Guam
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Letter to the Editor 
Retirement Fund at risk
Retirement Fund at risk
Retirement Fund at risk
- Monday, 30 Jul 2012 03:30am
- LETTER TO THE EDITOR
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