Gers

Chronic Shortfalls at GERS Continues Even After Cash Infusion, Causing System to Liquidate $30 Million From Portfolio in 2022

The Government Employees Retirement System continues to drain its portfolio to pay benefits even after a securitization deal that resulted in an immediate infusion of cash of $157 million. GERS Investment Officer Glenville Henderson, who presented his December 2022 performance report to the System's Board of Trustees during last week's Board meeting, provided board members with concerning news regarding the pension system's portfolio. Mr. Henderson noted that in October 2022, GERS received $157 million in bond notes from the Government of the Virgin Islands, as part of a $3.8 billion funding note under the Bryn administration's solvency plan.  These funds assisted with the system's performance in December,  the Investment Officer said, but could not fully eliminate the shortfall that resulted in a $30 million drawdown from the systems's portfolio by year's end. "We still have a fundamental shortfall in terms of the amount of contributions we get and the amount of benefit payments t...