Official Committee Of Retired Government Employees Rejects Pension Cuts

San Juan, PR- The Official Committee of Retired Government Employees (COR, for its acronym in Spanish), appointed by the United States Trustee in June 2017, is focusing all of its efforts to protect the collective interests of retired government employees and guarantee their pension benefits in the Title III cases of federal law PROMESA related to the Government of Puerto Rico.
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 “We fully support the position of the Government of Puerto Rico that excluded any adjustments to government pensions from the revised Fiscal Plan. We oppose the proposed cut by the Federal Oversight Management Board (FOMB) and continue to fight to resist this attempt against retirees,” said José Marín, a retired police sergeant.

 “I guarantee that the COR is doing everything possible and using all the legal tools at hand to defend our pensions, which were already adjusted and presently 75% of government retirees receive a pension of $1,500 a month or less” said Marín.
Even if the FOMB were to certify a Fiscal Plan that included cuts to pension benefits, these cuts could not be imposed unless and until the Court confirms a plan of adjustment that also includes such cuts.  The COR will continue to advocate against any cuts to pensions, whether in a proposed fiscal plan or in a plan of adjustment.
Regarding the letter sent by the federal court setting the deadline to file a proof of claim, the COR reiterated that government retirees don’t have to file a claim regarding their pensions and other retirement benefits. The COR represents the collective interests of the community of retirees in this specific matter.

Among the concrete actions that the COR is taking to defend the pensions and pension benefits of the community of 167,000 government retirees, are:

1. Providing Information to Pensioners: The COR has created a webpage and a Facebook page to keep the retirees informed. In the wake of confusion regarding the applicability of the Court’s Bar Date Order to government retirees’ claims for pensions, the COR posted an article on its webpage and placed a newspaper advertisement to highlight the language of the Bar Date Order that exempted government retirees asserting claims for pensions or other post-employment benefits from the requirement to file a proof of claim.
2. Intervention in Adversary Proceedings: The COR has intervened in various adversary proceedings commenced within the Title III cases to protect and promote the interests of the retirees. For example, the COR has intervened in the General Obligations bondholders’ lawsuit, which alleges that the group has priority payment status over any other creditor or obligations, including pensions. The COR emphasized that PROMESA mandates for the adequate funding of pensions and argued that the General Obligation bondholders do not have a priority under PROMESA.  The COR also intervened in the controversy between COFINA and the Central Government to support the annulment of the COFINA structure, with the purpose of liberating more funds to pay the pensions. The COR has also intervened in the Government Employees Retirement System lawsuits to protect and preserve the continuation of pension payments under Act 106. Click on the following link to view the court filings submitted by the COR’s legal team. 
3. Mediation Process: the COR is an active participant in the confidential mediation sessions that are occurring in parallel to the Title III litigation.
4. Efforts with the Government: the COR is engaged with the appropriate officials at both the local and national levels to promote the interests of retirees and advocate against pension cuts. On November 30, 2017, the Committee testified before the FOMB in behalf of the community of retirees.