Committee Opposes the FOMB’s Proposed Cuts to Pensions

San Juan, Puerto Rico – [October 23, 2018] Today the Fiscal Oversight and Management Board for Puerto Rico (FOMB) certified a new Fiscal Plan for the Commonwealth Government. The Board’s latest Fiscal Plan includes the pension reform measures set forth in prior fiscal plans which calls for a 10% average reduction to pensions, and in some cases, much more.

Miguel Fabre, Chairperson of the Official Committee of Retired Employees of the Government of Puerto Rico (COR, for its acronym in Spanish) said, “the COR is disappointed that the FOMB continues to propose fiscal plans that fail to adequately fund pensions and thus comply with PROMESA’s requirement.

​Explaining the impact of the Fiscal Plan, Fabre stated: “It is important for retirees to understand that the Fiscal Plan itself does not implement pension reductions. Pension reductions can only be implemented through a Plan of Adjustment confirmed by the District Court, and the COR will continue to advocate  and defend the rights of the 167,000 government service retirees in Puerto Rico’s Title III cases before the District Court.”

About the COR
The COR, which was appointed by the U.S. Trustee in June 2017, represents government retirees in Puerto Rico’s Title III case under federal law PROMESA. The COR represents the collective interests of pensioners from the Government Retirement System, the Teachers’ Retirement System, and the Judiciary Retirement System.