Senate committee hears retirees’ pleas as lawmakers seek finance certification for 25% pension payment

The Senate Fiscal Affairs Committee held an informal public meeting July 26 to address concerns that retirees may not receive the full statutory 25% pension contribution for fiscal 2026 under Public Law 24-20. Chairman Gerald Schneider said the Senate’s position is that the FY2026 budget “adequately funded the 25%,” but he and members pressed the executive branch for written fund certification to reconcile differences staff uncovered.

Fiscal analyst Dave Dimapan told the committee the Secretary of Finance’s June 12 communication listed several funding sources: an OIA grant of about $3.8 million, casino gross revenue tax receipts reported at roughly $1,002,674 (while the law reserves $2.4 million), and a general-revenue appropriation originally shown at $5.1 million. Dimapan said that reporting produced an apparent $1.4 million shortfall in the casino-tax line and that subsequent administrative adjustments reduced the general-revenue figure to about $4.4 million. He also described an earlier quarter reimbursement of about $4.015 million that the Senate’s calculations treat as an available source, producing an internal Senate estimate of roughly $14.7 million in total resources versus $11.9 million the committee says is needed to pay the 25% through Sept. 30, 2026.

“We need to find out from the sector what happened to that money that makes your account short,” Dimapan said, pointing to the difference between the Secretary of Finance’s figures and the amounts the legislature had reserved in law. He also noted that the $4.05 million reimbursement was described in an email from a settlement-fund administrator as being assigned to cover the 25%.

Members repeatedly framed the core procedural question as whether the Senate should act on House Bill 24-84 without a formal certification of available appropriated funds from the Secretary of Finance. Senator Francisco Q. Cruz and others said the Senate’s duty is to ensure appropriations can be drawn down and cautioned that a prior example showed that apparent certifications or reports can later lead to vetoes or to funds being unavailable.

Retirees who testified urged immediate action. “We need that money now. We need to receive our 25%,” retiree Remy Sablan told senators, describing health struggles, lost income for surviving spouses and stress following recent typhoons. Another commenter, Mario Taitanoa, asked the settlement fund and finance officials to provide a clear statement assuring retirees they are covered through Sept. 30, 2026.

Some retirees and speakers urged the Senate to pass HB 24-84 immediately, with one suggesting the Legislature could accept legal challenge later if necessary. Committee members rejected treating the question as simple politics and said they would continue seeking formal certification: the Senate president explained that a governor’s fiscal report does not substitute for the Secretary of Finance’s signed fund certification, the document the Senate uses to ensure appropriations are draw-downable.

Committee members said they had already taken steps to obtain more documentation. Chairman Schneider said the Senate president had written trustees to request details about the roughly $4 million overpayment from the first quarter and that the committee intends to continue dialogue with the Secretary of Finance in the coming days. The committee also said it would hold further public meetings and provide video access for those unable to attend.

The meeting did not record a formal vote on HB 24-84. Committee members said they would consider the bill if/when an official fund certification is furnished; retirees pressed for either immediate passage or a clear, written assurance that benefit payments will continue through the fiscal year.

The committee’s next steps include contacting the Secretary of Finance for a fund certification, clarifying the disposition of the $1.4 million casino-tax discrepancy and the $4.015 million reimbursement, and scheduling additional public meetings.