A member must have at least 5 years of employment for a terminal illness; or 6 years of employment for a non-terminal illness. Approved applicants will be entitled to a disability income of sixty-six and two-thirds (66 2/3%) of their salary at the time of disability. For further details on disability qualifications please contact the Retirement Fund.
Upon death of an active member with 5 years of employment or more, a lump sum of $40,000 death benefit will be paid to the beneficiary designated on file. If there is no beneficiary designated on file, the benefits will be paid in equal shares to the first surviving class of the classes below:
- Spouse of the Member
- Lawful living children of the Member
- Father and Mother of the Member
- Brothers and Sisters of the Member
- Administrator of the Estate of the Member
Withdrawals may be made from your 401(a) Money Purchase Plan upon the following qualifying events:
- Total Disability *
- Separation from service *
- Attainment of age 55
- Normal and Early Retirement
- Death of participant
- Financial Hardship
* as defined by the IRC
Ordinary income taxes will apply to each withdrawal. And, if you withdraw your money before age 55, you may be assessed a 10% early withdrawal tax penalty.
The Defined Contribution Plan ("401(a) DC Plan") includes a hardship provision in which DC active participants may apply for a hardship withdrawal while still employed with the Government of Guam.
For your 401 (a) plan, you can direct your money into one or more of a variety of investment options managed by some of the most reputable and recognized names in the industry. These choices include variable investment options. The variable options provide variable returns, which do not guarantee principal and are not guaranteed as to a fixed dollar amount. The rate of return you receive on a variable option may increase or decrease depending upon the performance of the underlying investments in the portfolio.
There are no recordkeeping or administrative fees for the Plan.