Establishment of the Government of Guam Defined Benefit 1.75 Retirement System;

Membership in DB 1.75 Retirement System.

(a)Defined Benefit 1.75 Retirement System.

(1)Beginning January 1, 2018, the government of Guam Defined Benefit 1.75 Retirement System shall be established hereunder and System shall be comprised of membership under the government of Guam Retirement Fund established under Article 1 of this Title and the Deferred Compensation Program established under Article 3 of this Title. The Defined Benefit 1.75 Retirement System does not comprise a separate fund or trust for members thereunder, but is the coordinated participation on a mandatory basis at specified benefit levels in the Retirement Fund and voluntary basis at specified benefit levels in the Deferred Compensation Program.

(2)Beginning January 1, 2018, the Defined Benefit 1.75 Retirement System shall be the retirement program for employees who timely elect to participate in the Defined Benefit 1.75 Retirement System. Members of the Defined Contribution System whose employment continues beyond December 31, 2017, shall continue to contribute to and participate in the Defined Contribution System without change in provisions or benefits, except as provided from time to time under the Defined Contribution System.

(b)Membership in Retirement Fund.

(1)Defined Benefit 1.75 Plan Election by New Employees in Defined Contribution System.

(A)[No text]

(i)All new employees whose employment commences between April 1, 2017 and December 31, 2017, inclusive, and who satisfy the eligibility requirements for membership under §§ 8105 and 8106, may elect to participate in the Retirement Fund as “Defined Benefit 1.75 Plan members” in accordance with such eligibility requirements. No additional new employees shall be admitted to the Existing Retirement System on or after January 1, 2018, except as provided hereunder or provided from time to time under the Existing Retirement System.

(ii)Further, all new employees whose employment commences on or after January 1, 2024, and who satisfy the eligibility requirements for membership under §§ 8105 and 8106, may elect to participate in the Retirement Fund as Defined Benefit 1.75 Plan members in accordance with such eligibility requirements, by making the appropriate election with the Defined Benefit 1.75 Retirement System in the form and manner as determined by the Board during the election period commencing on an employee’s date of employment and ending one

(1)month thereafter. Employees who elect to participate in the Retirement Fund as Defined Benefit 1.75 Plan members pursuant to § 8502(b)(1) may not change such election and shall not be eligible to be a member of the Defined Contribution System.

(B)Members of the Existing Retirement System whose employment continues beyond December 31, 2017, shall continue to contribute and participate in the Existing Retirement System CH. 8 RETIREMENT OF PUBLIC EMPLOYEES without change in provisions or benefits, except as provided from time to time under the Existing Retirement System.

(C)[No text]

(i)Except for those members who elect to participate in the Defined Benefit 1.75 Retirement System pursuant to § 8502(b)(2), any new employee hired after January 1, 2018 and who elects to participate in the Defined Contribution Retirement System and current members of the Defined Contribution System whose employment continues beyond December 31, 2017, shall continue to contribute and participate in the Defined Contribution System without change in provisions or benefits, except as provided from time to time under the Defined Contribution System.

(ii)Further, any new employee who commences employment on or after January 1, 2024, and who does not elect to participate in the Retirement Fund as a Defined Benefit 1.75 Plan member pursuant to § 8502(b)(1), shall contribute and participate in the Defined Contribution System, except as provided from time to time under the Defined Contribution System.

(2)Defined Benefit 1.75 Plan Election by Current Employees in Defined Contribution System.

(A)All employees who are members in the Defined Contribution System on March 31, 2017 shall be eligible to elect on a voluntary basis to become Defined Benefit 1.75 Plan members effective as of January 1, 2018, and to terminate active participation in the Defined Contribution System as of such date, by making the appropriate election with the Defined Benefit 1.75 Retirement System in the form and manner as determined by the Board during the election period commencing on April 1, 2017 and ending on September 30, 2017. After having made such election to become a Defined Benefit 1.75 Plan member, the member may not change such election or again become an active member of the Defined Contribution System. The failure to make such election shall be deemed to constitute an election by the member to remain as an active member under the Defined Contribution System. Such election shall not apply to members in the Defined Contribution System who have retired or otherwise terminated employment from government service and who are not employed by the government of Guam at the time of the election and as of the January 1, 2018, effective date of participation in the Defined Benefit 1.75 Plan.

(B)Further, all employees who are members in the Defined Contribution System at any time between June 1 ,2023 and December 31, 2023, inclusive, shall be eligible to elect on a voluntary basis to become Defined Benefit 1.75 Plan members effective as of January 1, 2024, and to terminate active participation in the Defined Contribution System as of such date, by making the appropriate election with the Defined Benefit 1.75 Retirement System in the form and manner as determined by the Board during the election period commencing on June 1, 2023, and ending on December 31, 2023 (or January 31, 2024, for members who commenced employment during the month of December 2023). After having made such election to become a Defined Benefit 1.75 Plan member, the member may not change such election or again become an active member of the Defined Contribution System. The failure to make such election shall be deemed to constitute an election by the member to remain as an active member under the Defined Contribution System. Such election shall not apply to members in the Defined Contribution System who have retired or otherwise terminated employment from government service and who are not employed by the government of Guam at the time of the election and as of the January 1, 2024 effective date of participation in the Defined Benefit 1.75 Plan. CH. 8 RETIREMENT OF PUBLIC EMPLOYEES

(3)Reemployment of Existing Retirement System Member. Any employee who is a member in the Existing Retirement System, who leaves government service and who is later reemployed after December 31, 2017 by the government of Guam, shall become an active member in the Existing Retirement System upon reemployment if such employee has not received a refund of contributions resulting in ineligibility for membership under § 8130(b), and if such employee otherwise meets the eligibility requirements under the Existing Retirement System.

(4)Reemployment of Defined Contribution System Member. Any employee who is a member maintaining an interest in the Defined Contribution System, who leaves government service and who is later reemployed by the government of Guam prior to September 30, 2017, shall become an active member in the Defined Contribution System upon reemployment if such employee otherwise meets the eligibility requirements under the Defined Contribution System.

(A)However, if such a member is reemployed during the period commencing on April 1, 2017, and ending on September 30, 2017, then:

(i)the member shall be eligible to elect on a voluntary basis to become a member of the Defined Benefit 1.75 Plan if such member otherwise meets the eligibility requirements for membership under §§ 8105 and 8106;

(ii)the election period for this election shall be the period commencing on April 1, 2017, and ending on September 30, 2017 (or October 31, 2017 for members reemployed during the month of September 2017), and the effective date of the member’s membership in the Defined Benefit 1.75 Plan shall be January 1, 2018; and

(iii)the member’s account under the Defined Contribution System shall be subject to transfer to the Defined Benefit 1.75 Retirement System in accordance with §§ 8503(d)(2) and 8504.

(B)[No text]

(i)Further, if such a member is reemployed between October 1, 2017 and December 31, 2017, inclusive:

(aa)the member shall be eligible to elect on a voluntary basis to become a member of the Defined Benefit 1.75 Plan if such member otherwise meets the eligibility requirements for membership under §§ 8105 and 8106;

(bb)the election period for such election shall be the thirty

(30)day period beginning on the date of reemployment, and the effective date of the member’s membership in the Defined Benefit 1.75 Plan shall be the date of reemployment; and

(cc)the member’s account under the Defined Contribution System shall not be subject to transfer to the Retirement Fund.

(ii)Further, for any employee who is a member maintaining an interest in the Defined Contribution System, who leaves government service and who is later reemployed by the government of Guam between June 1, 2023 and December 31, 2023, inclusive:

(aa)the member shall be eligible to elect on a voluntary basis to become a member of the Defined Benefit 1.75 Plan if such member otherwise meets the eligibility requirements for membership under §§ 8105 and 8106;

(bb)the election period for this election shall be the period commencing on June 1, 2023 and ending on December 31, 2023 (or January 31, 2024, for members CH. 8 RETIREMENT OF PUBLIC EMPLOYEES reemployed during the month of December 2023), and the effective date of the member’s membership in the Defined Benefit 1.75 Plan shall be January 1, 2024; and

(cc)the member’s account under the Defined Contribution System shall be subject to transfer to the Defined Benefit 1.75 Retirement System in accordance with §§ 8503(d)(2) and 8504.

(5)Reemployment of Defined Contribution System Member on Disability.

(A)Notwithstanding § 8502(b)(4), a member of the Defined Contribution System who had incurred a disability and at any time been eligible to receive any benefits provided under any longterm disability insurance policy issued pursuant to § 8213 or Article 4 of this Title shall not be eligible for membership under the Defined Benefit 1.75 Retirement System upon reemployment, but such member who satisfies the eligibility requirements for membership under §§ 8206 and 8207 at such time shall participate in the Defined Contribution System in accordance with such eligibility requirements.

(B)However, in the case of a member of the Defined Contribution System who is receiving disability benefits under § 8213 or Article 4 of this Title on or before September 30, 2017, such member shall be eligible to elect on a voluntary basis to become a member of the Defined Benefit 1.75 Plan in the event of the member’s reemployment or retirement on or after January 1, 2018. For this purpose, the election period for this election shall be the period commencing on April 1, 2017, and ending on September 30, 2017 (or October 31, 2017, for employees who commence receiving disability benefits during the month of September 2017), and the effective date of the member’s membership in the Defined Benefit 1.75 Plan shall be the later of:

(i)January 1, 2018, or

(ii)the date of the member’s reemployment or retirement.

(6)Reemployment of Government of Guam Retiree. Any employee who retired under the Existing Retirement System, the Defined Contribution System, or the Defined Benefit 1.75 Retirement System, shall participate in the Defined Contribution Plan upon reemployment.

(7)The Government of Guam Retirement Fund

(GGRF)shall submit to I Liheslaturan Guåhan an annual report of the following:

(A)total number of new employees who participated in the Defined Benefit 1.75 Plan;

(B)total number of employees who are members in the Defined Contribution System who elected on a voluntary basis to become members in the Defined Benefit 1.75 Plan;

(C)total number of public safety and law enforcement officers per agency who are members in the Defined Benefit 1.75 Plan that are eligible to retire;

(D)total number of public safety and law enforcement officers per agency who are members in the Defined Benefit 1.75 Plan that have elected to retire, and total number of vacancies per agency; and

(E)fiscal analysis by the Bureau of Budget and Management Research and the Office of Finance and Budget.

(c)Membership in Deferred Compensation Program. Defined Benefit 1.75 Plan members shall participate in the Deferred Compensation Program effective as of the date on which they commence participation in the Retirement Fund. CH. 8 RETIREMENT OF PUBLIC EMPLOYEES

(d)Membership in Welfare Benefit Plans. Defined Benefit 1.75 Plan members shall not be eligible to participate in the welfare benefit plans established and maintained under Article 4 of this Title. As such, members of the Defined Contribution System who elect to become Defined Benefit 1.75 Plan members pursuant to § 8502(b) shall terminate participation in such welfare benefit plans effective as of the date on which they commence participation in the Defined Benefit 1.75 Retirement System.

(e)Applicability of Articles 1 through 3, Chapter 8. Except as otherwise provided hereunder, with respect to Defined Benefit 1.75 Plan members who participate in the Retirement Fund, Defined Contribution System, and Deferred Compensation Program in accordance with the Defined Benefit 1.75 Retirement System provisions under this Article 5, the provisions of Articles 1 through 3 of this Chapter 8, respectively, shall be applicable to Defined Benefit 1.75 Plan members in a manner no different than the application to members who are not Defined Benefit 1.75 Plan members.