VI RETIREMENT SYSTEM Pension plans are very vital for retirees and has been appreciated in almost every part of the world. Most governments have put in place several employees’ retirement systems to ensure that government employees do not suffer after their service to the nation. The government of Virgin Islands has not been left behind in the process of ensuring that employees of the government do not suffer after they are retired from public service. The retirement system in the Virgin Islands has the sole obligation of encouraging qualified employees to enter and remain in the government service unless they are incapacitated or as a result of inability. The retirement system is to ensure that the employees are not faced with economic hardships even after such occurrences. There are several justifications to the existence of the GERS and other retirement systems as they may be offered by several other governments. The first justification to the existence retirement system in the US Virgin Islands is because the system is enacted as a result of a parliamentary Act. It is mandatory for government employees to ensure that they are registered with these retirement systems. GERS’s are also justified to be in existence since they offer credited services. Most of the employees who are registered in the systems are known to offer good services. The systems are also known to offer good financial services to beneficiaries. Employees, who chose to take advantage of the GERS’s extended services, also get financial assistance from the retirement systems in terms of GERS loans. These finances are very important as they help employees and retirees in improving their daily lives. Members of this retirement system are entitled to several other benefits which are crucial and very important in improving their lives day to day. Employees’ retirement system of the government of the Virgin Islands remains a tall order to distinguish, when the question is asked relative to ownership. Whether the institution belongs to the government or all the retirees of the government is a matter I think is ripe for sorting out and placing a definite answer on the records of the Virgin Islands. There is no question that both the government and he retirees have and still continue to make major contributions towards the success of the institution. The institution is governed through an Act of parliament which provides the guidelines of the roles to be played by the government and those that should be fulfilled by the retirees. For instance, one can assert that the institution belongs to the government. This is because those retirees do not become members of the institution willingly as the Act 479 provides a statutory mandate of GERS to ensure that all government employees are part of the institution. All employees are required by law to register with the institution as a condition for employment. Though the retirees are the ones expected to benefit a lot from the pension scheme, the manner through which they are registered to the institution does not look pleasant to the employees. The government seems to own the institution wholly where the employees are just but secondary owners of the institution. Furthermore, if we will draw from past practices of borrow, spend and don’t pay back, also the indication or the appearance that the GERS is the personal bank of the VI Government, one would wonder. Of course we must not forget the many unfunded periods where the VI Government came up short in its obligation to the GERS on behalf of the employees. However, it is important to note that the institution cannot exist if the retirees are not part of it. This is because the idea behind the introduction of the retirement system is to ensure that government employees do not suffer economic hardships in case of retirement or disability. These retirement systems are meant to sustain the retirees, their dependents and beneficiaries just in case they are not in a capacity to earn their living. The fact that the system is in existent as a result of contributions made by the retirees to the government, makes sense to conclude that the institution belongs to the retirees. The retirement system of the Virginia Islands belongs to the retirees since they are the main and most loyal contributors to the institution and they are the basis upon which the system is established. It is also important to note that the Virgin Islands government is a distinct and separate entity from the retirement system; this must be noted and always enforced. This is more evident because the affairs of the retirement system are run by a separate board of trustees. The government we are certain does not suppress the doings of the members to the system in terms of contributions; but are we sure that there is not suppression in other areas and other means? Present records does indicates that the GERS has served over 22000 members since it became operational and thus making the point that the retirees have an upper hand in the ownership of the system. Currently the V.I.G.R.E.S is known to serve over 8,200 retirees and pensioners and this proves that the system is fully owned by the retirees rather than the government. If one should follow these facts and the argument they present; it is very safe to argue that there are some unanswered questions. Among those questions, one I might ask is why it appears that all the indicators are indicating that governors and government has all the say concerning the system? The Virgin Islands GERS in concept and supported by facts such as those I presented in the previous paragraphs may appear that the government employees and retirees are the rightful owners of the system; however, how it is managed and who have the last says, gives a different prospective. Here are some provocative thoughts coming from my thought processor. If it is that the system belongs to the employees and the retirees, why we are the ones without a voice and why we are the last to know what is going on with our affairs. I personally believe that our government has us as though a bull by its horns; it is our thing but our government is the one that is, “doing whatever they want to do with it”. Retirees have no say concerning who sits on the governing board of the system, we have no say concerning who becomes director, CEO or administrator; everything is handed to us and the attitude is take it or leave it. I think it is time for us to consider allowing the retirees to vote in or out those who sits on the governing board of the GERS. I further believe that a voted in governing board should be empowered to select after careful consultation and investigation, the person who elevate to the chief executive position, being director or administrator. Since our government is involved, I do think there should be some inclusion so for consideration maybe two of the members of the governing board can be appointees continuing the process now in place; with the remaining members voted in by the owners/members of the system. I know right out, there are those who will cry foul and hint not possible; I say they are the stragglers. It is time for us to awake from our sleep and dreams; even though I must admit that it is good to dream; for it present a possibility. However, we cannot dream for too long and we must not be afraid to dream big. Trying is the foundation which success will be build upon. Trying quickens the hope within and nourishes the momentum of pressing forward towards each set goal; if we start there is the possibility that we will finish. Funding of retirement system in Virgin Islands is from diverse sources all of which are accredited and have ensured sustainability of the system. Most of the finances in the system come from the monthly contributions made by the government employees. All government employees are subject to contribute certain amount which is deducted from their monthly earnings, making these employees the more faithful and depended upon contributors. Another source of funds for the system comes from interests earned. Some of the members of the GERS borrow in the form of loans and mortgages which are entitled to earn some interests. The interests earned play a significant role in ensuring perpetuity of the system. By law the government of Virgin Islands is also slated as a major contributor towards maintenance and development of the retirement system. However there has been some tardiness and some delinquency. The Retirement system of Virgin Islands has also done some self help by its continuing involvement in numerous investments which have also played a great role in funding the activities of the system. For instance, the system is known to have purchased Haven Sight Shopping Mall which was estimated to cost around $32 million. The value of this mall is known to have appreciated to around $66.6 million. The prime property is located in an ideal location which also serves as a tourist embarking and disembarking point also a shopping destination; thus increasing the revenue base for the system. GERS is also known to have great interest in real estate business. For example, the system owns the GERS Complex on St. Thomas which has several tenants which include banks and other companies that offer services. All these investments are made by the members to the system to ensure there is a source of finances after retired. The system is known to have great passion to invest in assets which are managed by several investment managers who are obliged to ensure discipline and result based investment on assets. The several sources of finances have ensured that GERS had financial stability. Most of these sources are guaranteed and therefore there is little risk involved. The board of trustees mandated with the responsibility of safeguarding the interests of the system is also selected on merit thus ensuring perpetual sustainability of the systems finances. I will conclude and say that there are highs and lows concerning the Virgin Islands GERS; any action we seek must be to improve upon what we already have. We must however demand our right to know and share in the managing and sustainability of our retirement system. Too often it seems as though we are in a hurry to make decisions only to be included on the records as doing something. On the other hand we seldom investigate the long term effects of our actions. The GERS is more than a ball in a game, therefore we must be careful how it is tossed about; and even if it were to be a ball there is still the need for being careful. Most balls in the games we play have very significant when they are handled right. For example the basket ball must be handled right in order to score points to secure a win. The baseball must be fielded right or hit right resulting in a possible win. The golf ball, the bowling ball the pool ball all has their rules. Then in the great American game, foot ball players are taught to tuck the ball less it is stripped away and cause a fumble or turnover and lose the game. It is past kick off time, we are long past the fifty yards line and we can see the goal line let us take it in and all the way. ……………..By: Elvin R. Fahie, Sr., Senator 2014
Posted on: Wed, 22 Jan 2014 09:01:59 +0000
Trending Topics
Recently Viewed Topics
© 2015