GERS board votes to delay 3% increase in employer contributions by nine months, tweak portfolio

ST. CROIX — The board of the Government Employees’ Retirement System voted 4 to 1 during a special meeting held virtually tonight to wait nine months before implementing a 3% increase in the employer contribution the executive branch makes to the pension system.

Additionally, the board unanimously voted to tweak the System’s portfolio by moving about $50 million in earnings to safer bonds from riskier stocks.

Employer contribution:

Governor Albert Bryan Jr. requested the board to rescind its previously-approved resolution to increase employer contributions to 26.5% from 23.5% beginning January 1, 2025. Rather than rescinding its resolution, the board voted to move the effective date to October 1, 2025. Dwayne Callwood, GERS board chair, suggested the compromise to change the effective date. He said the delay would give the executive branch, or the plan sponsor, nine months of relief, providing an opportunity to work the increase into the fiscal year 2026 budget. Nellon Bowry was one of the board members who agreed with Callwood. “I’m definitely not prepared to rescind the increase,” Bowry said, adding he supports delaying implementation until October 1, 2025.