Virgin Islands government signs settlement with GERS, dismissing funding-related claims

The Government of the Virgin Islands said on Feb. 24, 2022, that it had entered into a settlement agreement with the Government Employees’ Retirement System that dismissed all pending actions against the government and released claims that were or could have been asserted by GERS relating to funding of the retirement system.

Government House said the settlement was a condition of Act No. 8540, the legislation authorizing the Matching Funds Revenue Bonds refinancing transaction. According to the administration, the refinancing would use savings from Rum Tax Cover-Over bonds as a revenue stream intended to help restore GERS to solvency over at least 30 years.

Government House said resolving the settlement condition allowed the Bryan administration to continue the process of marketing and selling the Rum Excise Tax Cover-Over bonds. Gov. Albert Bryan Jr. said the process of bringing the bonds to market could take up to six weeks.

The administration also said the government had paid millions of dollars in legal fees over the course of the lawsuit, including $1.5 million during the Bryan-Roach administration.

Official source: https://www.vi.gov/government-signs-settlement-agreement-with-gers-dismissing-pending-actions-relating-to-funding-retirement-system/