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Authorized statement by Chief of Staff Ricardo Llerandi regarding the agreement between the Financial Oversight and Management Board and the United Public Servers union

Authorized statement by Chief of Staff Ricardo Llerandi regarding the agreement between the Financial Oversight and Management Board and the United Public Servers union

(June 10, 2019 – La Fortaleza, San Juan) “Today, we learned of an agreement between the Financial Oversight and Management Board (FOMB) and the United Public Servers Union (SPU, by its Spanish acronym) with regards to the benefits of the public employees of the Government of Puerto Rico who participated in the retirement plan commonly known as Reform 2000, and the Defined Contribution Hybrid Program. As it is known, the defined contribution accounts of the participants of said retirement plans were not adequately funded during the past two decades.

However, as part of our reform to retirement systems through the PayGo System, we have been recognizing said balances, budgeting them, and disbursing them accordingly. However, our Administration has always been willing to fully reimburse said funds to public employees through a transfer from the Treasury Single Account (TSA) to the New Defined Contributions Plan created by Act 106-2017.

In that sense, we will begin the corresponding procedures to make that transfer without any additional obstacle. We are confident that the FOMB will support this initiative and allow us to implement it as soon as possible, for the benefit of tens of thousands of public employees.”

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