GMH behind on Retirement Fund contributions by $1.5 million

Guam Memorial Hospital (PNC file photo)

Guam – The Guam Memorial Hospital is once again behind on its contributions to the GovGuam Retirement Fund with a delinquency of more than $1.5 million.

The Retirement Fund sent a letter last Friday to GMH Administrator Peter John Camacho notifying him of the delinquency that dates back to November of last year. The letter indicates GMH is behind by three pay periods from November to December.

The total amount the hospital owes for this time is $1,550,330.  The figure includes $13,407 in penalties. It does not, however, include what’s currently due for the January 6 pay period.

If GMH continues its failure to pay, Retirement Fund Director Paula Plan warns that they could take the hospital to court.

“The Retirement Fund Board of Trustees, in accordance with their fiduciary responsibility, may file a Writ of Mandate if payment of the amounts now currently due are not paid immediately,” Blas says.

It’s the same warning the Retirement Fund gave GMH just a few weeks earlier in a letter dated January 5.  As a result of the hospital’s delinquency, any employee seeking to retire, by law, will not be able to do so until the agency’s debt is paid off.

It’s been nearly two years since GMH was in this very predicament when the retirement fund balance grew to $4.5 million.

Then, in the latter part of 2016, GMH received an influx of cash from bond proceeds to pay down their debt. At the time, GMH’s debt stood at $30 million which was paid off with the $45 million bond.