Retirement Contributions and Personnel Benefits

Funds.

(a)Legislative Intent. The Legislature finds that amounts appropriated directly to Guam agencies for retirement benefits, and personnel benefits such as health insurance, life insurance, and dental insurance, are utilized for personnel expenses such as overtime pay, hazardous pay, holiday pay, limited term positions, and other categories if the funds are transferred, so that the actual expenses of the government of Guam for retirement, health insurance, life insurance, dental insurance, overtime, limited term positions, and other categories, is obscured in the budget process since the categories for which funds are appropriated are actually utilized for a different purpose than that which is stated. For this reason, two funds which are separate and distinct from any other COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS funds of the government of Guam shall be utilized to better track the expenses of the government of Guam in these categories.

(b)Creation and Operation of Retirement Contributions Fund. There is created, separate and apart from any other funds of the government of Guam, and under the administration and control of the Department of Administration, the Retirement Contributions Fund. Notwithstanding any other provision of law, each fiscal year, all appropriations from the General Fund to any Guam agency for the purpose of paying retirement contributions shall be deposited in the Retirement Contributions Fund, and shall be paid out incrementally only as required by the actual expenses of the aggregate of the individual employees of the government who are currently employed at the time each payroll is prepared. A report of the status of the Retirement Contributions Fund shall be made to the Governor and to the Legislature at the end of each quarter. The funds in the Retirement Contributions Fund shall not be used for any other purpose than retirement contributions to be transmitted to the Government of Guam Retirement Fund. Within thirty (30 days after the end of each fiscal year, all funds in the Retirement Contributions Fund shall be paid over to the Government of Guam Retirement Fund to reduce the unfunded liability. A report of this transaction shall be made to the Legislature.

(c)Creation and Operation of Personnel Benefits Fund. There is created, separate and apart from any other funds of the government of Guam, and under the administration and control of the Department of Administration, the Personnel Benefits Fund. Notwithstanding any other provision of law, each fiscal year, all appropriations from the General Fund to any Guam agency for the purpose of paying medical insurance, life insurance, and dental insurance, shall be deposited in the Personnel Benefits Fund, and shall be paid out incrementally only as required by the actual expenses of the aggregate of the individual employees of the government who are currently employed at the time each payroll is prepared. A report of the status of the Personnel Benefits Fund shall be made to the Governor and to the Legislature at the end of each quarter. The funds in the Personnel Benefits Fund shall not be used for any other purpose than for medical insurance, life insurance, and dental insurance. Within thirty (30 days after the COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS end of each fiscal year, all funds in the Personnel Benefits Fund shall be paid over to the Government of Guam Retirement Fund to reduce the unfunded liability. A report of this transaction shall be made to the Legislature.