Business

G.E.R.S. Throws Cold Water on Suggestion to Restart Loan Program by Partnering With Private Bank

Governor Albert Bryan has suggested to the ailing Government Employees' Retirement System that it should pursue a partnership with a private banking institution with the aim of restarting the popular loan program the pension system suspended indefinitely in 2015. The program was popular among gov't employees who have said the loans helped with making ends meet and taking care of emergencies, among other obligations. G.E.R.S. Administrator Austin Nibbs spoke briefly about the governor's suggestion, though he was stopped by Board Chairman Nellon Bowry when attempting to discuss the pitch further. Nonetheless, Mr. Nibbs said the program would include an interest rate of 8 percent, with G.E.R.S. receiving a 4 percent share. Mr. Bryan's suggestion was not the first attempt to have the retirement system reinstate the loan program, which G.E.R.S. said it suspended "in order to ensure the availability of liquid funds to pay benefits, as well as to ensure the survivability of the system." Si...