Retirement Fund Chair Says Gov’s Latest Budget Omits Promised Fund Reimbursement

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Guam -While Adelup and the Legislature argue over the budget, the GovGuam Retirement fund is reminding both not to forget about their agreement to pay the fund back for helping bail out the government’s health insurance program.

READ Retirement Fund Chair Joe T. San Agustin’s letter to Senator Ben Pangelinan

That agreement was part of the Governor’s Supplemental Budget passed earlier this year. [The legislature called it the Health Insurance Bailout bill.]

Read the agreement promising to repay contributions owed to the Retirement Fund

Retirement Fund Board Chairman  Joe T. San Agustin sent a letter to Budget Committee Chair Senator Ben Pangelinan yesterday [Tuesday] advising him that the Governor’s most recent budget proposal does not include the promised language that would repays the retirement fund from the bond he has proposed.

San Agustin says if the government reneges on the agreement to repay retirement contributions borrowed to pay for health insurance premiums, they could be forced to deny all retirement applications and suspend annuities.

In response to this concern, which was raised in the joint letter to the Governor yesterday [Tuesday] the Governor responded today saying that the agreement provides repayment of the debt to the Retirement Fund from a General Obligation Bond and the bond he is proposing is different. It is a Limited Obligation bond.