Pension plans are very vital for retirees and has been appreciated in almost every part of the world. Most governments have put in place several employees’ retirement systems to ensure that government employees do not suffer after their service to the nation. The government of Virgin Islands has not been left behind in the process of ensuring that the government staffs do not suffer after they retire from public service. The retirement system in the Virgin Islands has the sole obligation of encouraging qualified employees to enter and remain in the government service unless they incapacitated or as a result of inability(Taylor, 2006). The retirement system ensures that the employees are not faced with economic hardships even after such occurrences.

There are several justifications to the existence of the GERS and other retirement systems as they may be offered by several other governments. The first justification to the existence retirement system in Virgin Islands is because the system is enacted as a result of a parliamentary Act. It is mandatory for government employees to ensure that they are registered with these retirement systems. GERS are also justified to be in existence since they offer credited services. Most of the employees who are registered to the systems are known to offer good services. The systems are also known to offer good financial services to beneficiaries. Most of these employees also get financial assistance from the retirement systems in terms of GERS loans. These finances are very important as they help them in improving their daily lives. Members to this retirement system are entitled to several other benefits which are crucial and very important in improving their lives(Peng, 2009).

Employees’ retirement system of the government of the Virgin Islands remains a tall order to distinguish whether the institution belongs to the government all the retirees of the government. This is because both the government and he retirees have major contribution towards the success of the institution. The institution is governed through an Act of parliament which provides the guidelines of the roles to be played by the government and those that should be fulfilled by the retirees.

For instance, one can assert that the institution belongs to the government. This is because those retirees do not become members of the institution willingly as the Act 479 provides a statutory mandate of GERS to ensure that all government employees are part of the institution. All employees are required by law to register with the institution as a condition for employment. Though the retirees are the ones expected to benefit a lot from the pension scheme, the manner through which they are registered to the institution does not look pleasant to the employees. The government seems to own the institution wholly where the employees are just but secondary owners of the institution (Taylor, 2006).

However, it is important to note that the institution cannot exist if the retirees are not part of it. This is because the idea behind the introduction of the retirement system it to ensure that government employees do not suffer economic hardships in case of retirement or disability. The systems are meant to sustain the retirees, their dependents and beneficiaries just in case they are not in a capacity to earn their living. The fact that the system is in existent as a result of the contributions made by the retirees to the government, makes sense to conclude that the institution belongs to the retirees. The retirement system in Virginia Islands belongs to the retirees since they are the main contributors to the institution and they are the basis upon which the system is established(Schieber, 2012).

It is also important to note that the Virgin Islands government has a distinct and separate entity from the retirement system. This is because the affairs of the retirement system are run by a separate board of trustees. The government does not suppress the doings of the members to the system both in terms of contributions and other means.  GERS has served over 22000 members since it became operational and thus making the retirees to have an upper hand in the ownership of the system. Currently the V.I.G.R.E.S is known to serve over 8,200 retirees and pensioners and this proves that the system is fully owned by the retirees rather than the government.

Funding of retirement system in Virgin Islands is from diverse sources all of which are accredited and have ensured sustainability of the system. Most of the finances in the system come from the monthly contributions made by the government employees. All government employees are subject to contribute certain amount which is deducted from their monthly earnings. Another source of funds for the system comes from interests earned. Some of the members of the GERS borrow loans and mortgages which are entitled to earn some interests. The interests earned play a significant role in ensuring perpetuity of the system. The government of Virgin Islands is also a major contributor towards maintenance and development of the retirement system(Schieber, 2012).

Retirement system in Virgin Islands has been involved in numerous investments which have also played a great role in funding the activities of the system. For instance, the system is known to have purchased Havensight Shopping Mall which was estimated to cost around $32 million. The value of this mall is to known to have appreciated to around $66.6 million. The prime property is located in an ideal location which also serves as a tourist destination thus increasing the revenue base for the system.

GERS is also known to have great interest in real estate business. For example, the system owns the GERS Complex on St. Thomas which has several tenants which include banks and other companies that offer services. GERS is also known to own large tracts of land in different parts of the republic. Most of these pieces of lands are in prime locations where they have built state of the art houses in St. Croix and St. Thomas. All these land investment are made by the members to the system to ensure there is source of finances after retired. The system is known to have great passion to invest in assets which are managed by several investment managers who are obliged to ensure discipline and result based investment on assets.

The several sources of finances have ensured that GERS had financial stability. Most of these sources are guaranteed and therefore there is little risk involved. The board of trustees mandated with the responsibility of safeguarding the interests of the system is also selected on merit thus ensuring perpetual sustainability of the systems finances. GERS has also made viable investments in real estates and other ventures which have ensured continuous and sustainable cash flow within the organization(Schieber, 2012). Several benefits associated with becoming a member of the pension plan has attracted many employees thus making the system one of the most profitable pension scheme in the virgin islands.

References

.ShowLittleLogo{vertical-align:middle;margin-right:4px;}About GERS. (n.d.).About GERS. Retrieved January 21, 2014, from http://www.usvigers.com/About_GERS.aspx

LEXIS Law Publishing, V. I. (2005). Virgin Islands code,. Virgin Islands code,, 1(34), 29.

Peng, J. (2009). State and local pension fund management. Boca Raton: CRC Press.

Schieber, S. J. (2012). The predictable surprise: the unraveling of the U.S. retirement system. Oxford: Oxford University Press.

Taylor, S. S. (2006). Public employee retirement systems: the structure and politics of teacher pensions. Ithaca, N.Y.: ILR Press.

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