Guam – The cost saving measures recommended by the “Spending Cuts Task Force” place most of the burden on the GovGuam retirement fund and that is not sitting well with Fund Chairman Joe T. San Agustin.
The Task Force has recommended allowing up to 500 GovGuam employees to voluntarily take early retirement which the report estimates could save anywhere between $15 and $35 million dollars annually.
The Report has also recommended amortizing, the unfunded liability by stretching out the payments for another 10 years to 2041 which could save an estimated $28.1 million.
However, on the K-57 Breakfast Show this morning, Board Chair San Agustin said those recommendations would put the fund in jeopardy and might lead to the same crisis faced by the CNMI’s retirement fund.
San Agustin and the Governor’s Communication’s Director Troy Torres traded words during the Breakfast Show when San Agustin said that the retirement fund was never invited to discuss the plan with the task force and Torres responded that they were welcome to come to the Village meetings.
San Agustin said a village meeting is not the forum to discuss a billion dollar asset.
And the conversation went further south when Torres accused San Agustin of a $100 million dollar loss to the fund in 2000 and another $300 million dollar loss in 2007.