House retirement panel hears bill to preserve purchasing power of Puerto Rico public pensions

SAN JUAN — The House of RepresentativesCommission on Retirement Systems on April 1, 2025, held a public hearing on House Bill 45, a measure that would increase retired public employeespensions by a formula (a first-year increase of 7% to 10% was discussed) and link future adjustments to the U.S. Social Security cost-of-living adjustment (COLA). Representative Lourdes Ramos, president of the commission, convened the session and said she has begun meetings with the governor and members of the oversight board to seek support.

Representatives from retirees' organizations told the commission that pensions have lost purchasing power and described the bill as a way to restore that value. "El proyecto impone establece aumentar entre un diez a siete por ciento de la anualidad de cada pensionado y establecer un aumento de la pensión equivalente al cola del seguro social de Estados Unidos," said Emilio Nieves Torres, identified as spokesperson for the retirees' chapter of the Unión Nacional de Educadores y Trabajadores de la Educación (UNETE). UNETE and other groups said roughly 160,000 government retirees would be affected and that more than 44,000 retired teachers lack Social Security contributions and face particular vulnerability.

Witnesses gave concrete examples of hardship. Ariel Aulat Lebrn, president of a chapter of retired workers, said many pensions range from about $500 to $700 per month and that retirees who left public service after changes adopted in 2013 receive substantially lower benefit formulas. He and other presenters said that retirees who retired after July 30, 2013, receive smaller percentages of their pre-retirement salary, lost access to employer contributions for health plans and other supplements, and in many cases no longer receive Christmas or medication bonuses.

Speakers and lawmakers discussed financing options. The bill as presented identifies a revenue source (referred to in the hearing as the "EVO"/IVU stream in discussion), and members noted a prior fiduciary trust created under a past bill had about $12 million deposited as of last year. Representative Ramos said the fiscal oversight board(Junta de Supervisin Fiscal) has precedent for allowing accommodations for pension benefits but that securing the board's approval will require political and technical work. A representative asked that OPAL (the legislative analysis office referenced in the hearing) update a previous estimate; a study cited at the hearing had put first-year cost at about $194 million, she said.

Panel members pressed for updated actuarial and fund-flow information. Ramos said the committee will summon agency heads and the retirement-system administrator for follow-up data and that a new administrator has already begun providing information. Lawmakers discussed possible legislative language changes, including directing that the funds from deceased members' remaining balances be retained for the special account that would support pension increases.

No formal vote or final action was taken during the hearing. Members of the commission said they would continue outreach to the governor's office and the fiscal oversight board and seek updated fiscal analyses before reporting the measure out of committee.

Next steps recorded at the hearing included: request updated OPAL cost estimates; subpoena or invite the retirement system administrator and relevant agency heads to provide data on entries and deaths in the pension rolls; and continue legislative and public engagement to build support prior to any committee vote.