November 28, 2020

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The Senate approves measure that creates a policy of zero cuts to pensions

The Senate loudly approved this afternoon the Decent Retirement Project, which establishes a public policy of zero cuts to pensions in open defiance of the intentions of the Fiscal Oversight Board [19659005].

When approved with amendments, both substantive and to create a conference committee, according to the majority spokesperson, Carmelo Ríos, the measure will be taken to a conference committee to settle the differences.

The amendments do include language introduced by the Financial Advisory Authority and Fiscal Agency, although the author of the measure, Lourdes Ramos, could not immediately specify them. The penetrating representative met until late last night with Aafaf staff discussing the measure.

In addition to proclaiming the zero-cut public policy, the measure creates a Trust for the Joint Administration of Retirement Systems to “guarantee” the payment of pensions.

It also creates the Unified Retirement System for the central government, the teaching profession and the judicial branch. The trust will be administered by the participants of the system.

"Aafaf had sent some amendments. The Senate had already prepared its siding and they approved the project with Aafaf's amendments" Ramos said. "But I do not see any drawbacks to the project that we cannot resolve in a conference committee."

Although the Trust appears in the version approved by the Senate, Ramos clarified that this is an amendment to force the conference committee, therefore, he has no doubts that the new entity will remain in the measure.

"You have to have the Trust, which has a fiduciary duty," Ramos said, explaining that Aafaf personnel mistakenly understood that the measure excluded their personnel. of the new Trust.

"And the legislative intention is going to remain, which is to create the instrument to be able to return to employees what was taken from them with Law 3-2013," Ramos said, referring to the approved law that Dramatically amended the government employee retirement system, increased years of service to achieve retirement, and cut future pensions.

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