Senators press AFAF for actuarial study and clarity on who would be hit by pension cuts
May 25, 2021 | Senate, Committees, Legislative, Puerto Rico, International
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During a question period following AFAF’s presentation, multiple senators demanded technical support for the policy debate, saying legislators and the public need actuarial evidence before weighing HB120’s tradeoffs.
Senadora Migdalia Padilla asked whether AFAF had reviewed an actuarial study supporting the bill; Marrero replied the agency had not seen an actuarial study tied to this bill and requested any studies be provided for analysis. He reiterated the administration’s political commitment to avoid further pension cuts but said technical validation is necessary to demonstrate fiscal feasibility.
On counts and contributions, Marrero told senators the government‑central retirement system has roughly 125,000 beneficiaries and about 120,000 active participants; he said the 2017 law (Ley 106) changed the payment structure to a pay‑as‑you‑go model. Regarding thresholds, Marrero said a $1,500 monthly protection threshold in the Board’s proposal would shield about 75% of retirees, leaving roughly 25% exposed to any cut; senators cited AFAF figures that about 31,000 people could be affected by deeper reductions.
Senators asked for specifics senators said they would need to evaluate the bill: how many active employees currently contribute and at what rates, projected annual cost of the measures in HB120, and the concrete fiscal impact of different cut scenarios. AFAF agreed to provide contribution counts and to try to calculate the additional fiscal impacts if the committee requests them.
Why it matters: The absence of an actuarial study complicates deliberations over whether the proposed trust and restitution mechanics are financially viable and whether they would meaningfully protect those most economically vulnerable.
Next steps: Senators requested that the presidency of the commission receive written actuarial and cost analyses within ten days, and AFAF offered to compute missing figures if the committee supplies the underlying studies or data.
Senadora Migdalia Padilla asked whether AFAF had reviewed an actuarial study supporting the bill; Marrero replied the agency had not seen an actuarial study tied to this bill and requested any studies be provided for analysis. He reiterated the administration’s political commitment to avoid further pension cuts but said technical validation is necessary to demonstrate fiscal feasibility.
On counts and contributions, Marrero told senators the government‑central retirement system has roughly 125,000 beneficiaries and about 120,000 active participants; he said the 2017 law (Ley 106) changed the payment structure to a pay‑as‑you‑go model. Regarding thresholds, Marrero said a $1,500 monthly protection threshold in the Board’s proposal would shield about 75% of retirees, leaving roughly 25% exposed to any cut; senators cited AFAF figures that about 31,000 people could be affected by deeper reductions.
Senators asked for specifics senators said they would need to evaluate the bill: how many active employees currently contribute and at what rates, projected annual cost of the measures in HB120, and the concrete fiscal impact of different cut scenarios. AFAF agreed to provide contribution counts and to try to calculate the additional fiscal impacts if the committee requests them.
Why it matters: The absence of an actuarial study complicates deliberations over whether the proposed trust and restitution mechanics are financially viable and whether they would meaningfully protect those most economically vulnerable.
Next steps: Senators requested that the presidency of the commission receive written actuarial and cost analyses within ten days, and AFAF offered to compute missing figures if the committee supplies the underlying studies or data.
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