Dear ,

Defined Benefit (DB) 1.75 Plan

You may have a limited window to elect to switch your retirement plan from the current Defined Contribution Plan to the new Defined Benefit 1.75 Plan effective January 1, 2024. This is a big decision with long-term impacts, so I wanted to provide some key facts to consider.

Potential Benefits of Switching to the Defined Benefit 1.75 Plan:

• Lifetime income - The defined benefit plan provides a guaranteed lifetime income based on your years of service and salary. This gives you certainty about your retirement income.
• Potentially higher benefits - With the defined benefit formula of 1.75% of your average three highest annual salary per year of service, your retirement benefits could end up being higher, especially if you have a long career.
• Earlier retirement - You may be able to retire earlier at age 55 with 25 years of service with a reduced benefit. Safety personnel may retire at age 55 without penalty if they meet certain criteria.
• Disability benefits - The new plan provides a disability retirement benefit if you become disabled.
• Survivor benefits - Your beneficiaries receive survivor benefits if you pass away before retirement.
• If you and your spouse are both Government of Guam employees, the surviving spouse retains his/her benefits in addition to receiving the survivor benefits.
• Cost of living adjustments - Your retirement benefit will increase annually based on a sliding scale adjustment.
• You could opt to not withdraw funds until age 62 to avoid penalties for early withdrawal.

Potential Reasons Not to Switch:

• Like having a portable account balance - With the defined contribution plan, you have a portable account balance you control. The defined benefit plan depends on your years of service.
• Concern about government insolvency - In the unlikely event the government cannot fund the defined benefit plan in the future, your benefits could be reduced. The defined contribution funds are in your account.
• Lose lump sum option - The defined contribution plan allows you to take your balance as a lump sum at retirement. The defined benefit plan provides an annuity.
• Locked into government service - To maximize benefits under the defined benefit plan, you need to work a long career with the government. The defined contribution plan is more flexible.

I hope these points give you some things to consider as you make this important retirement decision. Please reach out if you would like to discuss further. The election window closes soon, so be sure to make your choice by then. The Government of Guam Retirement Fund website has additional information.

HealthCare Information

The Government of Guam announces the FY24 Open Enrollment Period under a self-funded plan administered through a Third-Party Administrator (TPA) with Calvo's SelectCare and NetCare.

If you are currently enrolled under GovGuam's medical and dental plans, the data will be transmitted to the new carriers. You will only need to complete forms under the following circumstances:

• New Enrollee
• Change of Status (Change from HSA to PPO or vice versa or changes in class)
• Termination

You should expect to receive new subscriber numbers (virtual cards) from the providers by October. Your coverage under the new plans will be effective October 1, 2023 - September 30, 2024. If you make no changes, the attached rates will begin deduction on pay period ending October 7, 2023. Please be reminded, it is your responsibility to check your deductions to ensure they correspond correctly.

Not all clinics currently accept GovGuam's self-funded plan administered by Calvo's SelectCare. If you use FHP or plan on using Dr. Shieh, for instance, you may need to find another clinic for service.

Date: Monday, September 18, 2023

Time: 6 PM

Location: UOG, SPBA Building, Room 129

During this meeting, we will delve into a range of important topics that impact our workplaces and the communities we serve. Some of the key subjects to be covered include:

1. Overtime Issues at the Port: Explore the challenges and solutions related to overtime concerns, aiming to ensure fair compensation for your hard work.
2. School Repairs and Reconstruction: Discuss the status of ongoing efforts to improve our educational facilities, creating a conducive environment for both educators and students.
3. Teaching Online and Modified School Schedules: Share experiences and strategies for effective online teaching, along with navigating modified school schedules to adapt to changing circumstances.
4. 180 Days of School Mandate: Understand the implications of the school mandate and how it affects educators, students, and the overall education system.
5. Public Health Rules: Gain insights into the latest Public Health rules and guidelines that impact our work environment, prioritizing safety and well-being.
6. Safety Equipment for Law Enforcement and Firefighters: Address concerns regarding the provision of essential safety equipment for those dedicated to maintaining public safety.
7. Lawsuits Against the Guam Department of Education: Receive updates on ongoing legal matters involving the Guam Department of Education and its potential implications.

Your input is invaluable, as it helps us shape our strategies and initiatives moving forward. Your attendance and active participation will contribute to fostering a stronger collective voice and building a more inclusive and informed community.

Refreshments will be provided, and ample time will be allotted for open discussions and Q&A sessions. Let us come together to share our experiences, concerns, and ideas, working towards positive changes within our workplaces and the broader community.

Please mark your calendars and make every effort to attend this important meeting. Your presence matters as we strive to make a meaningful impact on the issues that affect us all. We look forward to your active participation and collaboration.

In solidarity,

GFT