GERS reports initial uptake in retiree loan program; staff to review program in July–August

Trustees received an update on the Government Employees Retirement System's retiree loan program at the June 18, 2025 meeting.

Administrator Angel Dawson reported that the board previously authorized a $15,000,000 program split as $7,500,000 per district and a maximum loan size of $7,500 per participant. Through June 12, 2025, staff had processed 144 retirees in the St. Thomas and St. John District and 126 in the St. Croix District. Disbursements to date were $1,040,775 for St. Thomas (about 13.8% of that district's allotment) and $936,600 for St. Croix (about 12.4% of that district's allotment), Dawson said.

System staff reported the broader loan portfolio stood at about 2,186 accounts, comprising about 2,120 personal loans and 66 legacy mortgage loans, with a portfolio dollar size reported at roughly $90,700,000 across categories.

Dawson said the director of loans and management will review both the retiree and the active loan programs and return to the board with recommendations between July and August 2025.

Why it matters: The program is intended to provide short-term liquidity to retirees. Trustees will need to weigh program demand, credit risk, and portfolio concentration before any expansion or adjustments are recommended.