» Membership
If you were hired by Government of Guam beginning October 1, 1995, you are required to participate in the 401(a) Defined Contribution Plan.
Voluntary participation is also granted to any member with less than twenty (20) years service credit, recognized under the existing retirement system. Voluntary transfers are allowed each year between the months of March and May.
The Plan does not allow participation by employees who are:
- Persons whose services are compensated on a fee basis.
- Independent contractors.
- Persons whose employment is for a specific project.
- Persons who are employed in the Senior Citizens Community Employment Program.
» Contribution Rates
Through payroll deduction, you can make pre-tax contributions to your 401 (a) plan from 5% of your eligible pay. Contributions are automatically deducted from payroll checks. Government of Guam makes a nondiscretionary contribution in an amount equal to 5% of your eligible compensation. These contributions benefit all participating employees.
» Vesting
Vesting refers to the percentage of employer contributions a participant is entitled to receive upon distribution from the Plan. Your contributions are always 100% vested (including any rollover/transfer contributions you are allowed to make to the Plan), plus any earnings they generate. Employer contributions to the Plan, plus any earnings they generate, are vested as follows:
Years of Service Vesting Percentage
- 5 or less, 0%
- 5 or more, 100%
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