Except as authorized by the Board of Trustees, no transfers of funds are authorized from any Retirement Fund account to the General Fund or any other fund of the government of Guam. I Maga’lahi [The Governor]shall have no transfer authority over any Retirement Fund accounts.

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SOURCE: Added by P.L. 27-043:11 (Nov. 14, 2003).

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ARTICLE 2
DEFINED CONTRIBUTION RETIREMENT PLAN

SOURCE: This Article was added by P.L. 23-042:3 (Sept. 29,
1995). The effective date is October 1, 1995.

NOTE: P.L. 23-042:3 (Sept. 29, 1995) created a new Defined Contribution Plan, and designated it as Article 2. The Compiler altered the numerical scheme from P.L. 23-042 to harmoniously fit the chapter, in accordance with the authority granted by 1 Guam Code Ann. § 1606.

COMMENT: Section 1 of P.L. 23-042 stated the purpose of this Article as:

The Legislature finds that:

(a) The Actuarial Valuation of the Retirement
Plan prepared by Deloitte & Touche as of September 30,
1993, expressed concern that the Fund benefit levels are rather excessive in comparison to most other government retirement systems.

(b) Benefit levels and retirement policy should be reviewed and benefit levels should be adjusted in order to address specific inequities, excessiveness, and desired policy objectives.

(c) It is necessary to maintain the current plan benefit levels for current members, while establishing a new plan for all new members.

(d) In establishing benefits for a new plan, generally accepted retirement income level standards should be observed and the details of any new plan must be considered thoroughly and a comprehensive education and implementation plan must be developed.

(e) The concern expressed by the Independent Actuaries must serve as a warning that the current fund may be jeopardized if the benefits it provides to its members are not reasonably related and restricted to the resources from which said benefits may be paid.

(f) Any further delay in enacting statutory changes to the current system or establishing a new plan may lead to the implementation of a plan for new

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members with benefits sharply disparate from those provided to current members.

(g) The legislature concurs with the recommendations of the Actuaries.

(h) The Legislature intends to establish a new “”Defined Contribution Plan”” for new members, in order to protect and preserve the fiscal soundness of the fund for the benefit of all its members now and in the future.