Lawmakers advanced two bills Monday to prevent government employees from losing retirement service credits because of loan defaults and to create a women veterans coordinator within the Office of Veterans Affairs.
The Senate Government Operations, Veterans Affairs and Consumer Protection Committee voted unanimously to send both measures to the Committee on Rules and Judiciary after hearing testimony, including from Government Employees’ Retirement System Administrator and Chief Executive Officer Angel E. Dawson Jr. and Veterans Affairs Director Patrick D. Farrell.
The first measure, Bill No. 36-0250, would amend Virgin Islands law to prohibit GERS from reducing, revoking or otherwise altering a member’s credited years of service because the member defaulted on a loan administered by the retirement system.
Years of credited service help determine when government employees can retire and what they receive in pension benefits. While the bill would bar GERS from reducing those credits because of a loan default, it would still allow the retirement system to collect unpaid debts through other lawful means.
Sen. Marise C. James, the bill’s sponsor, said the legislation was prompted by a constituent who worked for the government for 22 years before learning that nine years of credited service would not count toward retirement because she had defaulted on a GERS loan.
Although that situation was ultimately resolved, James said the Legislature should ensure future administrators cannot take similar action. She described the measure as “a bill that says to our public servants, your years of service cannot be erased because of a financial setback.”
Dawson testified that GERS previously used members’ retirement contributions to satisfy delinquent loans. Former employees who later returned to claim retirement benefits were then unable to restore those contributions, permanently reducing their credited service.
Dawson said the proposal would have no adverse financial impact because members seeking to restore their full service credit would first have to repay any retirement contributions previously applied to delinquent loan balances.
Sen. Kenneth L. Gittens questioned whether GERS ever had legal authority to reduce credited service because of loan defaults. Dawson pointed to the section of law allowing GERS to deduct unpaid loan balances from certain benefits, while legislative legal counsel said existing law does not expressly authorize the system to erase previously earned years of service.
Lawmakers also discussed problems involving government employers that deduct retirement contributions from employees’ paychecks but fail to remit those funds to GERS, leaving some workers unable to qualify for personal loans or with incomplete retirement records despite having deductions taken from their paychecks. Dawson said the retirement system depends on receiving those payroll deductions and cannot operate its loan program as if it were providing grants.
Several senators encouraged government employees to attend GERS retirement workshops and review their records several years before retiring to identify and resolve any discrepancies.
The committee adopted an amendment offered by Sen. Novelle E. Francis Jr. clarifying that GERS may continue collecting delinquent debts through lawful means but may not alter a member’s credited service because of a loan default. Senators then approved the amended bill on a 7-0 vote.
The committee also unanimously approved Bill No. 36-0279, sponsored by James, which would create a women veterans coordinator within the Virgin Islands Office of Veterans Affairs.
The coordinator would conduct outreach to women veterans and help connect them and their families with health care, housing, employment resources, disability claims assistance, mental health services and other federal and territorial benefits. James said the goal is to ensure “no woman veteran falls through the cracks simply because she does not know where to turn.”
James, a veteran, said women serve in every branch of the armed forces and, as a growing share of the veteran population, often face unique challenges, including military sexual trauma, women-specific health care needs and navigating complex benefits systems. She said the bill is about “recognizing that women veterans have unique needs and ensuring that the government is responsive to those needs.”
Farrell voiced strong support for the proposal, describing it as an investment in a growing population that, he said, has historically been underserved. He said nearly every state already has a similar position and that the Virgin Islands needs to catch up.
The hearing included discussion about how the position would be funded and whether it could legally be reserved for a woman veteran.
Farrell said the position is not currently included in the agency’s budget but estimated similar jobs nationally pay between $50,000 and $75,000 annually.
Legislative legal counsel advised senators that, under federal civil rights law, the position cannot legally be restricted to female applicants, even though it is intended to focus on issues affecting women veterans.
Despite those questions, the committee voted 7-0 to advance the measure, with lawmakers saying it would strengthen services for women veterans.
Farrell said the measure is meant to move Virgin Islands veterans “from being in the underserved category to being in the properly served category.”
Both bills were approved unanimously and now move to the Rules and Judiciary Committee for further consideration.
