GERS board lowers interest rate on alternative investment loans

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ST. THOMAS - At its monthly meeting on Thursday, the Government Employees Retirement System board voted to lower the interest rate on alternative investments.

Previously, the policy was to set the interest rates for any alternative investments at 8 percent.

GERS Administrator Austin Nibbs recommended to the board that the rate be tied to the actuarial assumed rate, which is 7.5 percent.

Nibbs said with the changing economy, the system still must ensure it is earning at least a 7.5 percent interest rate.

The motion was unanimously approved.

The board also ratified a poll vote taken in between the previous board meeting and Thursday's meeting.

The board unanimously agreed to have GERS act as lead plaintiff in a fraud lawsuit against Fusion-io, Inc., a computer and technology company that designs and manufactures computer memory storage devices.

The plaintiffs in the lawsuit contend that Fusion-io deceived investors from Aug. 10, 2012, through Oct. 23, 2013, by misrepresenting Fusion-io's competitive landscape and commoditization of its principal products, according to Nibbs.

GERS lost approximately $377,000 on its transactions in Fusion-io stock, he said.

The board also approved hiring BCA Watson Rice LLP as a consultant to develop policies and procedures for Carambola Beach Resort & Spa at a cost of $77,890.

Board members at Thursday's meeting were Carol Callwood, Wilbur Callender, Raymond James, Vincent Liger and Leona Smith. Members Desmond Maynard and Edgar Ross were absent.

- Contact reporter Aldeth Lewin at 714-9111 or email

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