Contributing today for a better tomorrow.

GERS UPDATE

February 2025 Issue

Relevant news, updates, and resources for your retirement planning!

Message from the Administrator/CEO

Angel E. Dawson, Jr.

Dear Esteemed Readers,

As we start 2025, exciting changes and developments are on the horizon!

An important highlight of the year, so far, was GERS Board Chairman Dwane Callwood and I joining four ranking members of the Virgin Islands Legislature on an official visit to Washington, D.C. There, we met with several members of the U.S. House of Representatives on February 12-13, 2025, at the invitation of Virgin Islands Delegate to Congress, Stacey Plasett. The primary focus of these discussions was increasing the rum excise tax cover-over funds rebated to the U.S. Virgin Islands for very important purposes.

As a direct outcome of these high-level meetings, Delegate Stacey Plaskett introduced bipartisan legislation along with Representative Ron Estes (Republican of Kansas) aimed at retroactively increasing the rum cover-over rate from $10.25 per proof gallon to $13.25. This crucial measure is designed to provide much-needed financial support to the Special Purpose Vehicle created in 2022 to shore up the GERS’ finances. We are hopeful for a successful outcome.

Also coming in 2025 is the new Hampton by Hilton hotel at the GERS’ Havensight property! This new addition will enhance the area by providing high-quality accommodations, boosting economic activity and attracting more visitors. The arrival of this well-known brand marks a significant step forward in our community’s expansion and development. It will also provide significant additional revenue to Havensight/GERS in the form of ground rental from the hotel developer.

We are also about to commence a massive upgrade of the Benefits Administration System used by GERS to manage member contributions and retirement accounts. Known as “V3locity”, it will streamline our processes, making transactions smoother and more convenient. This development will also represent a major advancement in improving service efficiency and enhancing the overall experience for you, our members.

In conjunction with Havensight’s Hampton by Hilton, we will also be developing a Visitor Center and park adjacent to the hotel. The Visitor Center will provide hospitality and visitor information services. The park will be a welcoming greenspace with a performance pavilion and commemorative statue honoring the “Coal Women” who loom large in the history of Charlotte Amalie Harbor for their role in refuelling steamships. Importantly, the Visitor Center will also feature “Rums of the Virgin Islands” and will promote future visits to our beloved “big brother”, St. Croix, to the more than one million annual visitors to our Havensight property.

As you can see, Team GERS continues to be on the move! We remain dedicated to delivering exceptional service and creating meaningful experiences for our members. Stay connected for more updates, as we work together to make this - our 65th year - one of much progress and success!

Best regards,

Angel E. Dawson, Jr.

Meeting with House Representatives

USVI Senators & GERS Officials Meet with House Representatives in Washington, D.C.

Virgin Islands legislators and Government Employees’ Retirement System officials were in Washington, D.C., with V.I. Congressional Delegate Stacey Plaskett to present the territory’s concerns to members of the powerful Ways and Means Committee this week, Plaskett’s office said late Wednesday.

The private meetings covered expiring 2017 tax cuts, rum cover-over shortfalls, Supplemental Security Income, excise taxes, customs, tax incentive programs, and more, Plaskett’s office said. The rum cover-over money — the excise tax collected on rum imported into the U.S. that is then transferred back to or “covered-over” to the territory — is used to fund GERS and can fluctuate. In fiscal year 2023, the rate was calculated at $10.50 per proof gallon, down from the $13.25 per proof gallon rate that expired at the end of 2021.

V.I. Delegate to Congress Stacey Plaskett announced the introduction of bipartisan legislation to retroactively increase the “rum cover over,” which provides funding to the territory that is critical to a plan to save the Government Employees Retirement System from insolvency.

Congresswoman Plaskett and Congressman Ron Estes have introduced the legislation to increase the "cover over", which is money transferred to the U.S. Virgin Islands and Puerto Rico from the rebate of federal excise taxes on distilled spirits produced in or imported into the United States from the two U.S. territories.

The Virgin Islands delegation included GERS Board Chairman Dwane Callwood, GERS Administrator Angel E. Dawson, Jr., Senate President Milton Potter, Sen. Marvin Blyden, Sen. Novelle Francis Jr., and Sen. Kurt Vialet. They met with a bipartisan group of influential House of Representatives members, including Rep. Ron Estes (R-Kansas), Rep. Brad Schneider (D-Illinois), Rep. Steven Horsford (D-Nevada), Rep. Tom Suozzi (D-New York), and Rep. Brian Fitzpatrick (R-Pennsylvania).

Excerpts from the VI Source and VI Daily News, respectively

GERS on the Move

On December 13, 2024, Team GERS participated in its annual Staff Development and Employee Recognition. The team-building activities during our annual meeting strengthened relationships, improved communication, and enhanced collaboration. Linea Solutions was invited to provide a Change Management presentation and fun activity to foster trust, boost morale, and encourage teamwork, while creating a more cohesive and motivated workforce. During the activity, teams were energized and worked to ensure that their airplane designs were top-tier - in hopes of being the winner. Thus, the staff is all winners! More than just exercises, the day was filled with shared experiences and well-deserved recognition of a dynamic team.

Employees of the Year

Agrifest 2025

The GERS participated in Agrifest 2025 - Agriculture and Food Fair on St. Croix, February 15-16, 2025. Over 210 active and retired members visited our booth to obtain pre-retirement counseling, review their contribution history, submit requests, and engage in friendly conversations. Members also gained access to their GERS account via Member Self-Service. We were excited to assist members, addressing inquiries, and fostering connections within our community. The event provided a valuable opportunity for members to stay informed, receive personalized support, and reconnect with family and friends.

Customer Service

Do you have questions about your membership, service credit, retirement eligibility, online self-service registration, or GERS Educational Webinars? Get in touch with Customer Service today. We are here to serve you.

Call us directly at 340-693-3939 or send an email to customercare@usvigers.com. Kindly allow up to 24 hours for a response to emails sent outside of our regular office hours.

The Customer Service Team provides real-time communication via telephone, email, and in person. Overall, the team's goal is to provide you with accurate, courteous, accessible, and responsive service.

Facebook: https://www.facebook.com/gersvi1959

X (Twitter): https://www.twitter.com/gersvi1959

LinkedIn: www.linkedin.com/in/gersvi1959

YouTube: https://www.youtube.com/@governmentofthevirginislan1118

Member Self-Service

Are you an active member or retiree of the GERS without a Member Self-Service (MSS) Account? What are you waiting for? MSS was created just for you!

If you've forgotten your password, please contact Customer Service by telephone at (340) 693-3939 or via email at customercare@usvigers.com.

To sign up, please refer to the following instructions.

Go to www.usvigers.com and click on "Member Self-Service"

Enter your Username and Password and click on Log In

If you do not have a Member Self-Service account, click on Register and be guided by the prompts (enter your Social Security Number, Last Name, Date of Birth, and then click on Validate.)

To update your primary address, phone number(s) and email(s), click on "Change" under "Contact Information".

You can also update your personal information by selecting "View/Update Your Personal Information" under "You and Your Beneficiaries".

Annual Statements

Active members, be on the look out for your annual statement from email V3locity SMTP - v3smtp@usvigers.com. We have begun distributing the Annual Statements by agency.

To ensure you receive your Annual Statement, log into your Member Self-Service and update your email and mailing address. Remember, your 2025 statement will include your and employer's contributions as of January 1, 2024 through December 31, 2024.

To access or print your Annual Statement, click on Review Your Document History under You and Your Beneficiaries in Member Self-Service. Please review your Annual Statement and report any inaccuracies to the Customer Service Office.

If you prefer a hard copy of your Annual Statement, from 2026 onward, please send an email to our Customer Service office at customercare@usvigers.com.

What is Service Credit Purchase (Prior Service)? When should I request one?

Storytime

Jessica Jones visits the GERS office to inquire about the Service Credit Purchase (SCP) process, where she was greeted by Customer Service. Due to the nature of Ms. Jones' inquiry, Customer Service invited a Benefits Analyst to further assist Ms. Jones.

Benefits Analyst: Welcome to the GERS. How can I assist you?

Ms. Jones: I am here to learn more about the SCP process. I would like to retire in the next five (5) years. I would like to also know if I owe any contributions.

Benefits Analyst: Please have a seat. [Asked questions to verify Ms. Jones' identity]

Ms. Jones: [Provides information]

Benefits Analyst: [Identity confirmed] Have you received your 2024 Annual "Benefits" Statement?

Ms. Jones: What is the Annual Statement?

Benefits Analyst: Every year, the GERS sends you an Annual Statement confirming your work history, service credits, years of service, employer and employees' actual and expected contributions. The Annual Statement is a great way to keep on top of your work history and contributions - and it's even a better way to catch any discrepancies early like missing NOPAs.

Ms. Jones: No, doesn't sound familiar.

Benefits Analyst: [Prints the Annual Statement and instruct Ms. Jones how to access the said document in Member Self-Service] [Points to the statement to highlight some areas] Here indicates your work history, service credits, how much you and your employer have contributed, and how much you and your employer should have contributed.

Ms. Jones: Oh wow! I realize that my employer expected contributions are lower than the actual amount contributed. What should I do?

Benefits Analyst: The employers are aware of their GERS obligation and are usually good with sending in their contributions. But don't worry, at this time, that will be covered if you work for Central Government. If you work for a semi-autonomous agency however, we will send an invoice to your agency. Those agencies are also pretty good with paying outstanding invoices to ensure that their employees can retire in a timely manner.

Ms. Jones: I am happy to hear that.

Benefits Analyst: I realize that you do not have a SCP on file. Please complete this form.

The Service Credit Purchase (formerly known as Prior Service) is the review of your work history, anticipated retirement date, estimated annuity payment, and any contributions owed. It also includes applicable pension laws and benefits, and actuarial factors.

Ms. Jones: Ok.

Benefits Analyst: Thank you. Your request will be assigned to one of our Benefits Analysts who will be conducting your evaluation and handling your case. The process can take 3-6 months. If you are missing any NOPAs, we will reach out to you and your agency, which may cause delays. If you have copies of your NOPAs - even better! Since I've already confirmed that your mailing address on file is correct, your analyst will send you a letter with the completed evaluation results. The letter will include, but not limited to, your years of service, any contributions owed and terms of repayment (if applicable), estimated retirement salary, annuity payment, and eligibility .

Ms. Jones: Thank you!

Three months later...

Ms. Jones: I've received my letter and will complete the form to begin the deductions to cover the periods that I owe in missing employee contributions from when I started employment and during the time I was on Leave Without Pay (both the missing employee and employer contributions).

Active Member Checklist & Forms

Download

How Much do you Need to Save for Retirement?

You're age 35, 50, or 60: How much should you save for retirement?

Merrill Lynch (https://www.benefits.ml.com/education/articles/?Title=howmuchdoyoureallyneedtosaveforretirement)

Retirement experts have offered plenty of rules of thumb about how much you need to save: somewhere near $1 million, 80–90% of your annual pre-retirement income, or 12 times your pre-retirement salary. But what’s right for you? And how do you know you’re on track?

“Because there are so many variables, even the retirement researchers can’t agree on a total dollar amount,” says Ben Storey, director of Retirement Thought Leadership at Bank of America. “What each person needs will vary widely based on a number of factors.” These factors include your current age, and the age at which you plan to retire or could be forced to retire due to declining health, the loss of a job, or other circumstances beyond your control; how long you expect to live based on family history; how much you plan to spend in retirement, and what your sources of retirement income will be.

Some people also may be surprised by how their seemingly large nest egg translates into annual income, as the following chart shows.

Just how big your nest egg should be and how long it might last will depend not only on what you save and invest, but also on how you spend it once you do retire. That’s why taking a look at your personal version of retirement and what it might cost can give you a more realistic picture of what you’ll need. Here are some of the factors to consider as you determine what your unique savings goal should be.

Base your retirement savings estimate on what you expect to spend

“Having a percentage or dollar amount to give you a rough idea for planning can be helpful, but you can’t be focused solely on that,” Storey says. “Everybody’s lifestyle is different. What they want to do in their retirement years may be very different as well.”

Rather than rely on a general figure, Storey suggests trying to create a ballpark annual estimate based on what you live on now and what might change when you retire.

The following chart, based on data from the Employee Benefit Research Institute (EBRI),1 can give you a rough idea of how your expenses for housing,Footnote2 food, health, transportation, clothing and entertainment may change during retirement to help you decide how much income you might need. If you plan to travel or entertain more—or pursue an expensive hobby—you’ll want to think about adding in something for those more flexible, discretionary expenses, too.

Remember, although some costs—such as health care—may increase in retirement, there may be savings elsewhere. “Researchers have found that once people retire they spend more time shopping carefully and preparing meals at home, for example. Their cost of living for items such as these goes down,” says Storey.

Keep in mind all of the income sources you’ll have to help cover your expenses

As you explore how much money you might really need in retirement, remember that the amount you decide to save and invest on your own is only one component of your future retirement income.

Most Americans will have Social Security as the backbone of their retirement savings. (Even if benefit payments are reduced in the future, Social Security is not likely to go away.) And don’t forget about other sources of income that may be available to you many years from now, including the money in your workplace and personal retirement accounts, pensions, annuities, proceeds from selling your home or business, rental income or an inheritance.

Two ways to check on your progress right now

Understanding your post-retirement expenses and income can help you estimate how much you may need to draw from your personal savings each year in retirement. However, it can be tough to turn that goal into a realistic amount to invest today and to know if you’re on track when your goal is decades away. Here are two ways you can check on your progress to see if any changes should be made.

1. For a quick check of how you’re doing today vs. similar savers:

The same way it can be helpful to see how your heart rate, blood pressure or weight compare to the “norm” when you get your annual physical, you can now assess how your retirement savings stack up against your peers by using the Net Wealth to Income Ratio developed by Merrill.

For example, if 35-year-old Jane, who earns $70,000 a year, wants to see how her savings measure up to the best savers in her age group, she would just multiply her current salary by 1.4 and compare that to her current savings. Thus, to keep up with the “best savers and investors” in her peer salary group, she would need to have saved $98,000 ($70,000 x 1.4)3

2. To see where you are and what you can change to stay on track for the future:

The Personal Retirement Calculator lets you view a projection of your savings to see if there is a gap between what you’ll have and what you’ll need when you finally retire and helps you adjust your strategy accordingly. With the calculator, you can create different scenarios based on the information you enter, including:

Your goal retirement age
Your estimated Social Security income
The number of years you plan to work part-time in retirement
The value of your other assets, including your mortgage

You can see how potential adjustments to any of these factors can affect the size of your retirement savings in the future.

“But even if these checkpoints show you’re behind where you might be, don’t get discouraged by the big numbers you may see,” advises Storey.

Whatever you save and invest today for the long term can make a big difference in the future. “If you need to save more, even a 1% increase can mean a lot over time,” he says.

Use the respective GERS calculator based on your employment classification to estimate your annuity payment. For the age field, please enter the age at which you plan to retire.

Regular 💵

Safety 💵

Senator 💵

Judge 💵

Retiree Corner

1099-R Tax Form

Retirees, be on the look out for your 1099-R form. Please make sure that your email and/or mailing address on file is correct today. If you do not receive your 1099-R form by March 31, 2025, please call our Customer Service office at (340) 693-3939 or email customercare@usvigers.com. You can also access a copy of your 1099 in Member Self-Service via our website, www.usvigers.com.

IRS Announces New Tax Rates for 2025

New Tax Rates Announced for 2025

Thanks to the updated 2025 income tax rates, you may fall into a lower tax bracket, reducing the percentage you pay on certain portions of your income. Additionally, the standard deduction has increased, allowing you to deduct more from your taxable income without itemizing on your 1040 tax return.

The U.S. tax system uses graduated tax rates, meaning different portions of your income are taxed at different rates. For 2025, the seven federal income tax rates remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. If you’re a single filer in the 22% tax bracket, you won’t pay 22% on all your taxable income. Instead, you will pay:

10% on income up to $11,925
12% on income between $11,926 and $48,475
22% on income above $48,475 (up to $103,350)

Additionally, the 2025 standard deduction has increased to $15,000 for single filers and $30,000 for married couples filing jointly, up from $14,600 and $29,200 in 2024. Since the standard deduction reduces taxable income, a higher deduction means a lower tax bill.

There’s even better news for older taxpayers. Single filers 65 and older can increase their standard deduction by $1,600 per person, while joint filers can add a combined $3,200. That means a married couple 65 or older could claim a total standard deduction of $33,200.

While taxpayers can also itemize deductions—such as for charitable donations—itemizing is only beneficial if total deductions exceed the standard deduction. With the higher 2025 standard deduction, many filers may find it more advantageous to take the automatic deduction rather than itemizing.

See full tax table document here.

Source: https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025

Table Source: AARP (https://www.aarp.org/money/taxes/income-tax-brackets-2025/)

1040 Tax Calculator

Retiree Payroll Schedule

St. Croix Retiree Holiday Social Highlights

St. Thomas/St. John Retiree Holiday Social Highlights

Board of Trustees

New Board Chair and Vice Chair

Board Chair Dwane Callwood

Board Vice Chair Leona Smith

During the January 23rd regular meeting of the Board of Trustees, the Board voted to select the new officers. Mr. Dwane Callwood was re-elected as the Board Chair and Ms. Leona Smith as the Board Vice Chair.

New Trustee - Mr. Tahmin Clarke

On the left, Trustee Tahmin Clarke, alongside Senate President, Honorable Milton Potter.

At the December 12th Committee on Rules and Judiciary Hearing at the Legislature of the Virgin Islands, Mr. Tahmin Clarke's nomination to the Government Employees' Retirement System Board of Trustees passed successfully. Trustee Tahmin Clarke replaces former trustee, Nellon Bowry, and will represent the St. Thomas district.

Mr. Clarke, recognizing his deep ties to the community, expressed his enthusiasm for taking on what he considered a crucial role as a member of the GERS Board. He shared with lawmakers that recent reflections on his life had prompted him to evaluate his contributions to society. This introspection led him to the realization that he could do more to support and drive progress within the very community that played a significant role in shaping him. He viewed his nomination as an exciting opportunity, aligning both with his commitment to giving back and his extensive expertise in finance, particularly in portfolio management.

With over 25 years of experience on Wall Street and a strong background in strategic communications, Mr. Clarke conveyed confidence in his ability to make meaningful contributions. He outlined his approach for the first 90 days, emphasizing the importance of gaining a comprehensive understanding of GERS operations and fostering strong working relationships before actively making recommendations and introducing new ideas.

The GERS Board of Trustees and Administrator Angel E. Dawson, Jr., thanked Trustee Bowry for his contributions and dedicated service and welcomed Trustee Clarke to the Board. Trustee Clarke attended his first Board meeting on January 23, 2025.

Source: VI Consortium

Regular Meeting of the Board Trustees on February 27, 2025

Watch Meetings on YouTube

GERS Events

March thru May schedule.

Learn More

Pre-Retirement Workshops for Actives

Successful retirement planning begins with member education. The GERS is excited to announce the 2025 pre-retirement workshops, which are designed to help you better plan your retirement. Currently, we provide three workshop topics, rotating twice per month.

The Pre-Retirement Workshop is open to active members at any stage in their career.
The Countdown to Retirement Workshop is open to active members who are at least 2 years away from retirement.
The Transitioning to Retirement Workshop is open to active members who are 6 months to 1 year away from retirement.

Attention All Agencies!

Do you prefer an in-person workshop to learn more about GERS benefits and your retirement options? GERS is excited to collaborate with you. We offer onsite presentations and outreach events to keep your team informed. Contact us today at (340) 693-3939 or email membereducation@usvigers.com to schedule a session!

Schedule Your Outreach

GERS Stats

GERS' Bottom Line as of

January 31st Payroll

Total Actives	9,036
Total Retirees	8,760
Retiree Payroll	$11,297,501.28
FY Total Number of Refunds	46
Total Refunds Paid	$407,179.60
Total Death Benefits	9
Death Benefits Paid	$107,203.24
Fiscal Year to Date Total Return Ending	1.7% as of January 31, 2025

The GERS funded status, is the level of accumulated assets that have been set aside for the payment of retirement benefits to employees. The GERS funded status is at 11.6%.

Investment Strategy

Portfolio Assets include loans, stocks, bonds, buildings and property, and alternatives investments.

Note: Return numbers exclude the GERS office buildings. They are however included in the total portfolio assets. All figures are estimates.

Havensight Mall

Creating an Experience

Havensight Mall is best known as a vibrant shopping and entertainment destination, offering a blend of local culture, unique shopping experiences, and exciting events. It’s a place where visitors can explore a variety of stores featuring locally made crafts, jewelry, fashion, and souvenirs. In addition to the shopping, Havensight Mall offers a range of amenities including convenient parking, a variety of food, and scenic views of the harbor. It’s a great spot for visitors to experience the island’s hospitality while enjoying an afternoon of shopping, dining, and live entertainment.

Friday Night @ Havensight was introduced to help create a memorable experience. The most recent Friday Night @ Havensight occurred on February 21st was great! Havensight was definitely the place to be. Those in attendance raved about the live entertainment, food, and great deals in stores.

See you at the next Friday Night @ Havensight on Friday, March 28, 2025. Same place, same time.

In the meantime, enjoy the footage from our previous events.

Friday Night @ Havensight

Friday Night @ Havensight Recap - February 21, 2025

Friday Night @ Havensight Recap - January 17, 2025

Friday Night @ Havensight Recap - December 27, 2024 Recap

Friday Night @ Havensight Recap - November 29, 2024 Recap

Deck the Halls and the Governor's Children Christmas Party Recap

Havensight Mall Hotel Update

We are excited to share an update regarding the GERS-leased property at Havensight Mall, which is being transformed into an exciting new hotel development – the Hampton by Hilton at Havensight. This innovative project, funded by Haven Development, is progressing remarkably, and we are pleased to report that the hotel is approximately 80% complete.

The project has reached an exciting phase, with interior and exterior finishings now underway. The meticulous work on the hotel's design and structure is taking shape, and the vision for a modern and welcoming hospitality destination is becoming a reality. This development is poised to elevate the guest experience at a prime location for visitors and locals alike.

In conjunction with Havensight’s Hampton by Hilton, we will also be developing a Visitor Center and park adjacent to the hotel.

The anticipated grand opening of the Hampton by Hilton at Havensight is slated for Summer 2025, marking a major milestone for the GERS' Havensight Mall and the Virgin Islands community.