In accordance with § 8308, the employer shall automatically enroll members and deduct and credit Defined Benefit 1.75 Plan member contributions under the Deferred Compensation Program in an amount equal to one percent (1%) of the member’s base salary. However, notwithstanding that the contributions by Defined Benefit 1.75 Plan members are designated and shall be administered as member contributions under § 8308, such contributions shall be on a mandatory basis deducted from the member’s base salary and paid by the employer in lieu of contributions by the member, and shall constitute pre-tax “pick-up” employer contributions for purposes of determining the income tax treatment of such contributions under Section 414(h) of the United States Internal Revenue Code. SOURCE: Added by P.L. 33-186:3 (Sept. 14, 2016). Amended by P.L. 34-042:XII:17(c) (Sept. 16, 2017).
ARTICLE 6 GUAM RETIREMENT SECURITY PLAN (GRSP) [REPEALED]
SOURCE: Added as uncodified law by P.L. 33-186:5 (Sept. 14, 2016), codified pursuant to the authority of 1 GCA § 1606. Repealed by P.L. 35-072:2 and 3 (Feb. 14, 2020), effective retroactively to Jan. 1, 2018. 2020 NOTE: Prior to its repeal, Article 6 provided for a cash balance retirement plan known as the Guam Retirement Security Plan (GRSP), as enacted by P.L. 33-186:5 (Sept. 14, 2016). However, the GRSP was repealed by P.L. 35- 072:1 (Feb. 14, 2020), where the Legislature found “that the Board of Trustees of the Retirement Fund properly refrained from implementing the GRSP and properly designated the DCRS [Defined Contribution Retirement System] as the appropriate default plan for new employees of the government of Guam as of January 1, 2018.” Consequently, the repeal of the GRSP, codified Article 6 of Chapter 8 of Title 4, is effective retroactively to January 1, 2018.
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COL 2026-05-05