The Board of Trustees of the Government Employees Retirement System has filed suit against the executive and legislative branches of the V.I. government, charging that the recently passed early retirement incentive plan unfairly burdens active government employees and is inconsistent with the V.I. Code.
In a statement released Friday, the board said it turned to the Territorial Court to protect GERS' retirement reserve fund, which it said will be adversely affected by the plan. It called the plan's financing provisions "invalid."
Under the retirement plan, those government employees with 30 years of service would be offered a 15 to 20 percent salary incentive to retire. In addition, those with at least 28 years could also retire provided they acquire two more years of advance credited service.
According to the statement, "the GERS is designed in a manner that anticipates that all employees' benefits will be paid for before retirement. A measure that allows employees to retire without their retirement package being paid for will certainly have an adverse effect on the GERS' retirement reserve fund. If these payment are not made up front, then the cost is borne by the active members who remain on the government's payroll."
The board warned that those with less than 30 years of service who apply for retirement under the new law "should expect some delay until the court has ruled" on the lawsuit.
