This morning, Gov. Pedro Pierluisi reacted to the decision of the federal court on annulling the Dignified Retirement Law: "I have been informed. We will review the decision with the legal team that we have and we will go from there. We must evaluate whether to appeal or not. I will wait for the advice of the lawyers," he added.
"The decision does not surprise me because the law had several components, some that were clearly at odds with the fiscal plan certified by the Board," said the governor, in reference to the Financial Oversight and Management Board (FOMB).
On Tuesday, the U.S. District Court for the District of Puerto Rico, headed by Judge Laura Taylor Swain, annulled the Dignified Retirement Law, stating that it violates the federal law known as Promesa that governs the island government's bankruptcy process.
On July 2, the FOMB had filed a lawsuit against Gov. Pierluisi, the presidents of the Senate and the House of Representatives José Luis Dalmau and Rafael “Tatito” Hernández, respectively, and the Fiscal Agency and Financial Advisory Authority, requesting that the federal court stop the implementation of Act 7, known as the Dignified Retirement Law, approved unanimously by the legislative bodies and signed by the governor.
Almost three months after the lawsuit was filed, the judge decided to annul the law, stating that it violates multiple norms and provisions.
"In accordance with sections 204 (a) and 104 (k) of [the federal law] PROMESA, Law 7 is declared null and void, unenforceable and without effect," said Taylor Swain in her ruling.
"The defendants are prohibited from implementing and enforcing Law 7," she added.
The judge specifically cited that “pursuant to section 108 (a) (2) and 104 (k) of PROMESA, section 1.02, section 5.02, chapter 2, chapter 3, chapter 4 and the last sentence of Section 5.01 of Law 7 is declared null and void, unenforceable and without effect. The defendants are prohibited from applying and enforcing those provisions of Law 7.”
The Dignified Retirement law sought to protect public pensions from being cut.