Business executive John de Jongh Jr., nominated by Gov. Charles Turnbull to serve on the Government Employees Retirement System board of trustees, told a Senate panel Wednesday that it's time to look at alternative public retirement options.
GERS is now paying out more in benefits than it is receiving in employee and employer contributions, and thus must dip into its once-sacred investment holdings, he noted in testimony before the Rules Committee.
Also, he pointed out, there have been annual shortfalls since the 1994 Early Retirement Act — intended to save the government money by reducing the public payroll — took effect. Today, there are barely twice as many people paying into the system as there are retirees drawing down benefits.
De Jongh, who also is president of the St. Thomas-St. John Chamber of Commerce and chairs the governor's Fiscal Recovery Task Force, said he would be against using GERS portfolio funds to back any bonds the government might float to finance infrastructure projects. Doing so, he told the panel, would put the system at "undue risk."
The committee approved deJongh's nomination, which will now go before the full Legislature.