The Alliance of Employees, Mobilized Workers and Retirees of the Puerto Rico Electric Power Authority (PREPA) issued a new warning about the future of pensions for PREPA retirees and employees. The group says the Debt Adjustment Plan (PAD) proposed by the Oversight Board includes changes that would substantially alter the Retirement System and reduce protections for its participants.
One of the main objections is the proposal to freeze the accrual of benefits under the current system and eliminate the cost-of-living adjustment (COLA). According to the organization, that measure would have consequences both for the system’s future structure and for current retirees. Johnny Rodríguez Ortiz, spokesperson for the Alliance and president of the PREPA Retirees Association (AJAEE), warned that the proposal goes far beyond a financial restructuring and could change the retirement conditions of thousands of workers.
"The Oversight Board is not only restructuring a debt; it is putting on the table a model that can change our Retirement System and the economic security of thousands of PREPA retirees and workers forever, whose rights are acquired rights," Rodríguez Ortiz said. The Alliance also denounced that since March 2025, when the Board presented its fifth PAD for PREPA, the main concerns of Retirement System participants have gone unaddressed.