PRESS RELEASE: RETIREES TO RECEIVE REFUND PAYMENTS FOLLOWING THE APPROVAL OF BILL NO. 30-0318 BY THE FULL BODY In a session called by petition, members of the 30th Legislature gathered on Monday as a full body to address a single item. Bill No. 30-0318, an Act amending title 3 V.I.C., chapters 27 and 28A to facilitate the return of a portion of retroactive wages owed to retirees of the Government Employees Retirement System (GERS). As a result of the bill’s passage, thousands of retirees in the Territory will receive refunds of monies being held unlawfully by GERS since 2010. The bill sponsored primarily by Senators Tregenza A. Roach, Alicia “Chucky” Hansen, Shawn-Michael Malone, and Donald Cole authorizes and directs GERS to release the payment of retroactive wages, including, but not limited to the refund of the 8% deductions from retroactive wages authorized to be paid to retirees. When the payment of 16% of the retroactive pay due to all government employees was authorized in 2010, persons who were entitled to payment, but had retired and were receiving a retirement annuity, by law, could not have their annuity recalculated to include the payment. This notwithstanding, a sum was provided as a contribution to GERS on behalf of these retirees. Since that time, GERS has been holding the money because its position was that it did not have authorization to release the money. This bill gives GERS the authorization. Present at the hearing to share testimony was Joseph B. Arellano, Esq., an attorney representing a group of retirees known as the Government Retirees United for Fairness, Inc. Written testimony was also submitted by Austin L. Nibbs, Administrator of GERS. In his opening remarks, Senator Roach began by thanking retirees for their service to the Government of the Virgin Islands. He also expressed his gratitude to his colleagues Senators Hansen, Malone, and Cole, who joined together with Senator Roach as the four primary sponsors of the bill. “In discussing this three year financial setback of our retirees, we came together, researched and drafted this legislation as the most effective way to address this matter,” said Senator Roach. “There has been much talk as to whether this legislation was necessary. I see no reason for this delinquency in refund payment to continue. The next step would have been litigation. The primary sponsors and I talked about the effects of exposing the GERS system unnecessarily to litigation. In each instance, there is no benefit to anyone if a retirement system is already suffering to have it either expend resources fighting unnecessary battles or losing and having to pay judgments, attorney fees, etc.,” said Senator Roach. The consensus by the fourteen Senators present was that retirees rightfully deserved their refund payments. Amendments were offered to Bill No. 30-0318, to include ensuring that GERS would return refunds at the statutory rate of 9% interest. The bill was voted on as amended and received full support from the body. Senator Roach was pleased with the outcome of the hearing and will continue to work with his colleagues regardless of party affiliation or minority/majority status to create meaningful legislation for the people of the Virgin Islands.
Posted on: Wed, 05 Mar 2014 16:52:39 +0000
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