The worldwide COVID-19 situation may negatively affect the investments of the Government of Guam Retirement Fund’s 457 Plan, the Office of Public Accountability stated in its latest report.
According to OPA, both domestic and international equity markets have experienced declines due to the pandemic.
Because of this, there may be changes in net assets available for GovGuam 457 Plan benefits.
“Due to the significant uncertainties caused by COVID-19, the Fund is unable to reasonably estimate the ultimate financial impact,” OPA stated.
Before the pandemic, in calendar year 2019, the 457 Plan’s investments were placed at $91.8 million at fair value. This was a $22.1 million increase from $69.6 million in CY 2018.
The money used to pay benefits is accumulated from contributions made by each participant and income generated from the participant’s investments, including investment appreciation and interest.
According to OPA, investment income net of fees during CY 2019 was $14.2 million.