In Last-Ditch Effort VI GERS Will Ask the Federal Government for $5 Billion, Arguing the Cost to

[TexasTowelie]

IN LAST-DITCH EFFORT, G.E.R.S. WILL ASK THE FEDERAL GOVERNMENT FOR $5 BILLION, ARGUING THE COST TO WASHINGTON WOULD BE MORE IF PENSION SYSTEM COLLAPSES


The Government Employees’ Retirement System is preparing a proposal that seeks a $5 billion bailout from the federal government, a last-ditch effort to save itself from imminent collapse as the Government of the Virgin Islands, which is the plan sponsor, has failed to meet its obligation of funding its own pension system.

That’s according to Austin Nibbs, G.E.R.S. administrator, who told The Consortium following a Thursday board meeting that the plan would be completed and formally introduced soon.

“We’re trying to see if we can get a federal loan of about $3 billion to $5 billion. We’re doing a white paper and getting all the stakeholders together,” Mr. Nibbs said. A white paper is an authoritative report or guide that informs stakeholders concisely about a complex issue and presents the issuing body’s philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.

The board’s stance is that if the federal government does not provide G.E.R.S. at least a partial bailout (a cash injection of $400 million would add additional years to the pension system while kicking the can down the road; to save G.E.R.S., $5 billion is needed), it would cost the federal government much more than the $5 billion G.E.R.S. plans to request, Mr. Nibbs said.

Read more: https://viconsortium.com/breaking-news/in-last-ditch-effort-g-e-r-s-will-ask-the-federal-government-for-5-billion-arguing-the-cost-to-washington-would-be-more-if-pension-system-collapses/