Settlement was a condition of legislation authorizing GVI to refinance Rum Tax Cover-Over bonds and use the savings as a revenue stream to restore GERS to solvency for at least 30 years
U.S. VIRGIN ISLANDS — The Government of the Virgin Islands (GVI), on behalf of all branches of the government, entered into a Settlement Agreement with the Government Employees’ Retirement System (GERS) dismissing all pending actions against the GVI and releasing all claims that were or could have been asserted by GERS relating to funding of the retirement system.
The settlement was a condition of the Authorizing Legislation for the Matching Funds Revenue Bonds Refinancing Transaction (Act No. 8540) that will substantially, in part, benefit the GERS over the next 30 years in bringing the GERS to solvency.
“I’d like to thank the GERS board for their help in resolving this long-standing issue so we can move forward with our efforts on behalf of the retiree members and all of the people in restoring the system to solvency,” said Governor Albert Bryan Jr.
Resolving this condition clears a hurdle and allows Governor Bryan and his team to continue the process of marketing and selling the Rum Excise Tax Cover-Over bonds.
“Because time remains of the essence for the GVI to secure the best interest rates possible, the Administration and its Advisory Team have been working diligently and expeditiously following the Legislature’s approval of our plan,” Governor Bryan said. “The process of getting to final closing still has many steps and risks before we are able to achieve the final goal of closing on the bonds. However, my team and I have made this our highest priority in order to bring relief to the GERS as quickly as possible.”
The Governor said it could take up to six weeks to complete the process of getting the bonds to market.
Over the course of the lawsuit, the GVI has paid millions of dollars in legal fees, including $1.5 million during the Bryan-Roach Administration, in addition to the amount of money the GERS has paid in legal fees.
The Bryan-Roach Administration is investing in the Territory’s people, infrastructure and future through transparency, stabilizing the economy, restoring trust in the government and ensuring that recovery projects are completed as quickly as possible. Visit transparency.vi.gov