Government Pensions in Trouble

Posted on 01/1/2014 by | AARP Blog Author | Comments

© Istockphoto/PeskyMonkey

© Istockphoto/PeskyMonkey

Things are looking shaky for Virgin Islands government workers who are at or near retirement. The Government Employees Retirement System is headed for bankruptcy in less than a decade due to insufficient contributions, a declining ratio of employees to retirees and lower-than-expected interest income.

In 2013, a government task force recommended possible fixes such as increasing contributions, setting a minimum retirement age and prohibiting people from collecting a pension while still working.

“About 8,200 government retirees buy goods and services in the Virgin Islands, so this crisis could hurt our local economy,” said Denyce Singleton, AARP state director. To suggest solutions or share concerns, email viaarp@aarp.org.

 

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