A bipartisan bill seeking to help safeguard retiree pension received supportive testimony on Wednesday.

Under current law, the government of Guam must fully pay off the pension system’s unfunded liability by May 1, 2033. The unfunded liability represents the gap between what the Government of Guam Retirement Fund has set aside and what it owes to current and future retirees.

Sen. Telo Taitague’s Bill 263-38 would allow the remaining balance to be paid down in structured, rolling 15-year periods rather than facing a single compressed deadline.

Taitague said this approach would not reduce pension benefits. Instead, it would spread payments to avoid sudden contribution spikes and maintain steady, predictable funding over time, she said.

The bill, co-sponsored by gubernatorial candidates Vice Speaker V. Anthony Ada and Sen. Joe S. San Agustin, also seeks to modernize investment rules to align with current market practices.

Testifying in support of the bill during Wednesday’s public hearing were Government of Guam Retirement Fund Chairperson Antolina Leon Guerrero, Treasurer Ricky Hernandez, Director Paula Blas, and Defined Benefit investment consultant Maggie Ralbovsky. 

“Based on our actuarial review, this bill would enhance contribution rate stability and predictability, while maintaining strong funding progress for the Retirement Fund,” the GovGuam Retirement Fund stated in its testimony.

Milliman Inc., the GovGuam Retirement Fund’s independent actuary, stated that under current law, the compressed 2033 deadline could lead to significant year-to-year contribution volatility, while the bill’s proposed amortization structure would provide smoother and more predictable funding over time.

Sen. Chris Barnett, during the public hearing, asked questions about how the proposal would affect retirees in practical, day-to-day terms.

Retirement Fund representatives, in response, said the bill is a proactive measure designed to address potential market swings well before 2033.

By improving risk-adjusted returns and maintaining a strong security ratio, the measure comparing Fund assets to its obligations, the bill helps ensure that the promises made to retirees and active members remain secure, Taitague’s office said in a media release.

“The heart of this bill is to protect our retirees and make sure our government can meet its promises without disrupting essential services,” Taitague said in a statement.