Modernizing the Rum Cover-Over to Protect Our Retirees
The rum cover-over is one of the Virgin Islands’ most important sources of revenue, pledged to support GERS for decades to come. But a rate set in 1999 no longer reflects today’s economic reality. A permanent $13.25 rate may sound like a victory — yet if it had kept pace with inflation, it would be worth roughly $23 today. Locking in yesterday’s value does not protect tomorrow’s retirees.
- Keep $13.25 as the guaranteed minimum
- Modernize the formula to grow with inflation
- Tie the rate to changing market conditions
- Protect GERS funding for future generations
- Secure the retirement our seniors
- Put long-term stability over short-term wins
Do you have any Questions?
It’s federal revenue returned to the Virgin Islands based on rum produced here and sold in the U.S. It’s a major funding source pledged to support the Government Employees’ Retirement System (GERS).
The $13.25 rate was set over two decades ago. Because it never adjusted for inflation, its real value has eroded — weakening the protection it was meant to provide.
Keep $13.25 as the guaranteed floor, but modernize the formula so it grows with inflation and market conditions, protecting retirees long-term.