GERS Faces $112 Million Rum Revenue Gap and Stripped Authority to Act as Temporary Insolvency Looms

The Government Employees Retirement System has once again received less money than expected from rum cover over funds, the system announced on Wednesday. “Once again, the Funding Note Payment to GERS has fallen short,” said GERS Administrator Angel Dawson.

In 2023 and 2024, GERS cumulatively received over $90 million less than anticipated. Added to this year’s $21.7 million shortfall, the total shortage now stands at “$112.2 million less than pledged by the Indenture of Trust,” Mr. Dawson noted.

A recent decision by Congress to permanently increase the cover over rate to $13.25 per proof gallon, which comes into effect at the end of this year, was not made retroactive. Additionally, “consumption of Virgin Islands rum on the U.S. mainland continues to decline, along with that of other spirits,” Mr. Dawson noted, highlighting a trend that has concerned territorial finance officials for some time.  READ MORE...https://viconsortium.com/vi-gers/virgin-islands-gers-faces--112-million-rum-revenue-gap-and-stripped-authority-to-act-as-temporary-insolvency-looms