GERS Gets First Big Check to Avert Bankruptcy

Gov. Albert Bryan Jr. emphasized the positive effects of the recent government bond sale aimed at keeping the Government Employees’ Retirement System solvent “forever” at a press conference on Monday at Government House on St. Thomas.

He said the system’s 9,000 retirees won’t have to worry about their annuities getting cut, and 8,000 current government employees can stop wondering if there will be any funds left for their retirement.

However, he added that plan would entail the government coming up with another $40 or $50 million in annual revenue to keep its budget balanced as rum revenues that normally go to that effort are now dedicated to the bond effort. He said the people of the territory would have to get used to paying that bill. Bryan estimated that it would only be a five percent increase in the next budget, and last year he estimated the budget was increased by 15 percent.

Bryan said he sees no need for a tax increase, saying the “Virgin Islands is on a trajectory for excellence.” One possible source of income he mentioned is cannabis. In 2019 the Office of Cannabis Regulation was established to allow the use of medical cannabis. In March, the cannabis board met to draft licensing fees for cultivating, manufacturing, dispensing, and registering fees for customers.