Bill Allowing Gov't Retirees to be Rehired and Keep Their Pension While Contributing to GERS Moves Forward
Legislation that would allow government retirees to be rehired by the government under special terms was approved by the Committee on Finance Tuesday and has been forwarded to the Committee on Rules and Judiciary for further vetting.
2022-02-02 12:18:33 - VI News Staff
Sponsored by Senator Milton Potter, the measure is an Act amending Virgin Islands Code to allow retirees to re-enter government service and retain their annuity while paying a contribution to the Government Employees' Retirement System.
Mr. Potter in his explanation of the measure said the pension system would not be stressed by the proposed measure if it were to become law. “In fact, it offers a financial benefit to the system in that GERS would continue to receive both the employer and the employee contributions without the obligations of having to recalculate the retiree's service annuity,” he said.
“It widens the pool of potential employees to help the government of the Virgin Islands fill hundreds of positions," Mr. Potter stated, adding that a returning retiree must go through the application process. He also explained that the GVI would get the opportunity to retain institutional knowledge from a pool of highly trained individuals to fill vacant positions.
“What is clear is that the landscape of our labor force is changing. Millennials today make up 50 percent of the workforce but many of them are not attracted to work for 30 years for the same employer. Most seek work flexibility that promotes work-life balance; they are seeking opportunities for entrepreneurship," he added.
The bill says if a retiree is chosen for a job within the GVI, this person would be retained for three years and must pay employee contributions into the system. "He or she will not be allowed to accumulate annual leave payout upon separation,” Mr. Potter said. He went on to describe the measure as a win-win situation. "It will generate badly needed income for both the retiree and the GERS in general, while creating a pool of qualified applicants to fill government vacancies."
Austin Nibbs, GERS CEO and administrator, said the legislation has the full backing of the pension system. “The advantage for GERS by passing this bill is the additional contributions that will be collected from employee and employer by filling the vacant positions,” he said.