Purpose

To describe the terms and conditions under which University employees may participate in the Government Employees' Retirement System.

Eligibility

All full-time employees on Regular appointments, who have completed one year of continuous Government or University service, are eligible to participate in the Government Employee's Retirement System.

Enrollment

The appropriate enrollment application forms should be completed at the time of orientation and will remain on file in the Human Resources Office. Upon the completion of the first full year of employment, the application forms will be forwarded to GERS. Deductions will begin on the next payroll period following the completion of the one year waiting period.

Contribution Rates

Contribution rates to GERS are set by the Virgin Islands Legislature.

Vesting

Members become vested in the retirement system after ten (10) years of credited service. At that time they become eligible to receive retirement benefits under the requirements for Service or Early retirement, as well as for Disability retirement.

Plan Type

The Virgin Islands Government Employees Retirement System is a group retirement program to which both the employer and the employee contribute. The benefit at time of retirement is based upon the employee's age, years of service, and salary history.

Retirement Age

The retirement age under GERS is seventy (70) for those employees with at least ten (10) years of credited service. Employees with thirty (30) years of service may retire at any age at full annuity.

A member who is  50 years old with 10 years credited service (but less than 30 years) may retire at a reduced annuity

Final Average Salary

The Final Average Salary is the average of highest annual salary up to a maximum of $65,000 during any consecutive three (3) year period in the last ten (10) years. Total maximum benefit may not exceed 100% of maximum salary.

Retirement Benefits

Retirement benefits are calculated as follows:

[2.5 X Final Average Salary] X Years of Credited Service.

Early Retirement

Employees who have completed twenty (20) years of credited service may opt for early retirement. Under this option benefits are reduced by 3.9% per year that the employees age is below sixty (60). The calculation is as follows:

(2.5 X Final Average Salary) X Years of Credited Service] - .325% X [# of months age is below 60 years].

Disability Retirement

GERS participants with nine (9) years of credited service, who become totally and permanently disabled are eligible for Disability Retirement. Benefits are calculated as follows:

2% of Final Average Salary X Years of Credited Service.

The minimum benefit is 20% and the maximum is 60% of Final Average Salary.

Post-Retirement Adjustments

Regular retirement benefits are increased by 1.5% of the original retirement benefit each year after the attainment of age sixty (60). Disability benefits are increased by 1% per year prior to age sixty (60).

Military Service Credit

Qualified members may receive up to ten (10) years military service credit toward retirement.

Sick Leave Service Credit

Retirees will receive service credit for all unused sick and annual leave at the time of retirement. (Credit will not be given for less than five (5) days of unused leave.)

Other Service Credit

Service credit for years of government service during which no contributions were made to the system may be obtained by paying the contribution applicable for that period. Members who are interested in this option should contact GERS for details. Payments for past service credit may be set up through payroll deduction.

Disclaimer

The policies described in the foregoing section are governed by the Virgin Islands Government Employees' Retirement System Board of Trustees., and as such are subject to change by that body. Employees are encouraged to contact GERS with important questions concerning retirement issues.