The Financial Oversight and Management Board (FOMB) raised fiscal and legal concerns about at least 18 legislative measures related to pensions and retirement benefits in Puerto Rico, warning it may go to court to block any it deems incompatible with the Plan of Adjustment, PROMESA, or the Fiscal Plan. In an eight-page letter to Governor Jenniffer González and legislative leaders Carlos 'Johnny' Méndez and Thomas Rivera Schatz, the Board said recent proposals include pension and retirement benefit increases, cost-of-living adjustments, special bonuses, expanded categories of employees eligible for improved or early retirement, changes to retirement eligibility requirements, modifications to how contributions or retirement benefits can be accessed, and new retirement benefit structures.
The letter, signed by Executive Director Robert F. Mujica Jr., included an annex listing the 18 most recent measures, covering pension increases, bonuses, cost-of-living adjustments, expanded early-retirement eligibility, and modified access conditions. The Board stated each measure carries fiscal, actuarial, budgetary and legal implications, short- and long-term, that must be evaluated before approval. It acknowledged the economic hardships faced by many Puerto Rico pensioners and the public policy considerations behind efforts to ensure retirement economic security.