Puerto Rico Gov Rejects Pension Cuts in POA

Puerto Rico Gov. Pedro Pierluisi reiterated his stance against the pension cuts outlined in the government's Plan of Adjustment (POA), presented last night by the Financial Oversight and Management Board (FOMB) before the Title III Court.

"My administration has been emphatic that this cut to pensions is not reasonable and it is not necessary to confirm the Adjustment Plan, so we will leave it established in the confirmation process before the Title III Court," Pierluisi said in written statements.

The POA is based on the agreements previously reached by FOMB with the Official Committee of Retirees (ORC) and other unions, for which it envisions a reduction of 8.5 percent in the pensions of government retirees who earn more than $1,500 per month, as stipulated by the past POA. This represents between 26 percent and 27 percent of all pensioners.

On several occasions, the governor has underscored that the public policy of his administration is zero cuts to government retirees.

"My government will actively participate in the confirmation process that begins now and will defend the best interests of our People, including the interests of our pensioners," he added.

Moreover, Pierluisi affirmed that he favored various aspects of the POA. He highlighted the reduction in Puerto Rico's total debt of almost 80 percent and the reduction in total debt service by roughly 62 percent.

"I have been clear that Puerto Rico needs to leave this bankruptcy process behind in order to achieve the sustainable economic development to which we all aspire and eliminate the uncertainty inherent in this process, as well as the millionaire expenses of the restructuring that the government has had to incur," he stated.