Governor, DOA Director taken aback by response from GGRF
In a letter to DOA Director Christine Baleto today, the Retirement Fund says that the Board of Trustees fully supports the override of the Governor’s veto on Bill 2-33. This is even in light of the concerns that the bill is based on dated information, would add at least $173 million to the Retirement Funds’ unfunded liability, and still is unclear on who and how many people will benefit from the plan.
Director Paula, in her letter, says: “The Board of Trustees supports the override of Bill 2-33 so that the Board can evaluate the costs of implementation and proceed in the best interests of the members and participants in the government’s plans.”
Her statement puzzled DOA Director Baleto and Governor Calvo. The Governor said it sounds like they want to experiment and implement a plan THEN figure out the cost.
“This is what happened in 1995. We needed to fix a problem and came up with a so-called solution that has unfolded to the situation we’re at today,” Governor Calvo stated.
“The independent, third-party actuary is helping us evaluate the cost and impact of Bill 2-33 so we can make an informed decision. Not pass something and hope it works out. The Retirement Fund wants to do it the other way around. It’s mind boggling.”