Statement of Legislative Concern

(a)The actuarial valuation of the Government of Guam Retirement Fund issued October 9, 1992 by, Deloitte & Touche expressed concern that “the Fund benefit levels are excessive in comparison to most other government retirement systems. Benefit levels and retirement policy should be reviewed and benefits levels adjusted to match this policy. Because it may be difficult to decrease benefit levels for current members, it may be necessary to maintain current plan benefit levels for current government employees CH. 8 RETIREMENT OF PUBLIC EMPLOYEES while establishing a new plan for all new members. In establishing benefit for a new plan, generally accepted retirement income level standards should be observed.” I Liheslatura finds that the concern expressed by the independent actuaries is a warning that the Fund may be jeopardized if the benefits it provides to its members are not reasonably related and restricted to the resources from which benefits may be paid. Delay in examining this issue may lead to implementation of a plan for new members with benefits sharply disparate from those provided to present members. I Liheslatura concurs with the recommendation of the actuaries that the Plan’s benefit levels and retirement policy should be reviewed and recommendations made to I Liheslatura for enactment of such statutory changes as may be necessary.

(b)No later than June 30, 1993, and not later than every two years thereafter, the Board shall submit to I Liheslatura its recommendations of amendments that need be made to the law establishing the Fund to protect and preserve the actuarial soundness of the Fund for the benefits of all its members.