Impact of Judge Laura Taylor Swain’s Orders on the FOMB’s Motion to Dismiss the Governor’s and Legislature’s complaints.
The August 7, 2018 Opinions issued by Judge Laura Taylor Swain on the lawsuits brought by the Governor of Puerto Rico and the Legislature challenging the power of the Fiscal Oversight and Management Board (FOMB) to approve a Fiscal Plan and budget for Puerto Rico are not related to the adjustments to the pensions proposed by the FOMB in the certified Fiscal Plan.
Because retirees rights to their pensions are considered contract rights under Puerto Rico law, pension cuts can only be implemented through a confirmed Plan of Adjustment. The confirmation of the Adjustment Plan is part of the last stage of the Title III cases to restructure the debt, and when the time comes retirees will have the opportunity to learn about its content and vote in favor or against said document. At present, we are in the stage of a certified budget by FOMB. The Disclosure Statement and voting process must take place before the court can confirm an Adjustment Plan.
The COR is paying close attention and actively participating in the Title III proceedings that could have a direct or indirect impact in the pensions of government retirees. We will keep the community of government retirees informed about the matters that could impact their pensions in agreement with our responsibilities as an official committee.
To read a summary of Judge Laura Taylor Swain’s Orders click here.
To read the Orders, download these documents: