Bryan statement says Legislature approved debt-refinancing measure tied to GERS funding

Gov. Albert Bryan Jr. said in a statement issued on Jan. 31 that the 34th Legislature had passed a securitization bill authorizing the Virgin Islands government to refinance Rum Cover-Over Matching Fund bonds and use the savings to provide a revenue stream for the Government Employees’ Retirement System.

According to the statement, the measure passed 14-0, with Sen. Janelle Sarauw absent.

The statement said Bryan first proposed the plan in December 2019 to refinance government debt at a lower interest rate and direct the savings to GERS for 30 years. It said that proposal and two amended versions had previously failed in the Senate.

The statement said Segal and Company, the GERS actuary, had projected that the retirement system would become insolvent by October 2024 or sooner. It also said the GERS Board of Trustees had warned that insolvency would require substantial reductions in retiree benefits.

Bryan said the Senate's approval allowed the government to begin work to secure the bonds with Rum Cover-Over funds.

Official source: https://www.vi.gov/governor-bryan-thanks-34th-legislature-for-authorizing-refinance-of-government-debt-to-stabilize-the-gers/