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GERS Revives Limited Personal Loan Program for Government Employees
The Board of Trustees of the V.I. Government Employees' Retirement System (GERS) has approved a motion to restart a limited version of the previously suspended Personal Loan Program for government employees. This decision, made during a board meeting on January 25, signifies a notable shift in the GERS's operational approach since the suspension of the program in 2015.
The board agreed to allocate $20 million towards the Personal Loan Program, with funds being equally divided between the St. Thomas-St. John and St. Croix districts. This move comes as a response to the requirements of a 2016 law sponsored by Senator Kenneth Gittens. The law demands that GERS lends up to $20 million to government employees, allowing for no more than $10,000 per individual. The repayment plan for these loans is set with a five-year deadline, including interest.
The program's authorization will be reevaluated annually, contingent on government contributions and investment returns. The board's limited discretion in implementing the GERS program, due to legal requirements, was a focal point of discussion.
