Respicio Amendment to Supplemental Budget Bill Would Apply 6% Retirement Reduction to Judiciary, As Well as Executive Branch

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Guam – Senator Rory Respicio has sent a letter to Governor Eddie Calvo commending him on the “innovative solution” he worked out with the Retirement Fund in support for the Supplemental Budget, and he is suggesting that the Governor apply the same solution to help the Superior Court with its cash shortfall.

In his letter, Senator Respicio informs the Governor that he has authored an amendment to the Governor’s Supplamental Budget Bill 184 that would reduce the Judiciaries contribution to the retirement fund from 27% to 21% and allow the Judiciary itself to decide how to use the 6% saved to overcome its own budget shortfall.

However, Respicio also writes that he will not be recommending a similar reduction in the retirement fund contributions for Legislative employees, because “We have been frugal and have been able to live within our reduced means.

 

READ Senator Respicio’s letter to Governor Calvo in FULL below:

June 2, 2011
The Honorable Edward B. Calvo
Governor of Guam
Ricardo J. Bordallo Governor’s Complex
Adelup, Guam 96910

Dear Governor Calvo:

Hafa adai. I must commend you on the innovative solution you have worked out with the Government of Guam Retirement Fund (GGRF) to assist the Administration in “making ends meet” during the current budget cycle.

I suggest that this avenue may also be the best solution for the shortfall that is now being experienced by another of the three branches of government: the Judiciary. As you are aware, the Judiciary of Guam received $3.85 Million less than requested in their Fiscal Year 2011 budget. In addition, a 10% increment, the third of four increments due by law to Law Enforcement Personnel, was not paid.

In light of this critical situation, I have authored a floor amendment to Bill 184-31 that will reduce the Judiciary’s contribution to the GGRF from twenty-six percent (26%) to twenty-one percent (21%), to be consistent with the recent arrangements that you have made with the Retirement Fund. If passed and incorporated into Bill 184-31, this amendment will leave it to the Judicial Council to determine where to best reallocate these cost avoidances and address their current shortfalls.

While the Legislative branch is also experiencing its own fiscal challenges, we have been frugal and have been able to live within our reduced means. I will not be recommending that our contribution to the Retirement Fund be similarly lowered.

Should the amendment pass, I am respectfully requesting that you respect the other branches of our government as separate but co-equal, and that allotment releases are handled equitably. Si Yu’os Ma’åse.

Very truly yours,
Rory J. Respicio
c: All Senators
Government of Guam Retirement Fund
Chief Justice Carbullido