Bill would allow AEELA to manage public employee retirement accounts

The new legislation would amend the law to allow the Commonwealth of Puerto Rico Employees Association to serve as an alternative administrator for the Defined Contribution Plan.

By THE STAR STAFF

Rep. Tatiana Pérez Ramírez has introduced House Bill 969, seeking to amend Law 106-2017, known as the “Law to Guarantee Payment to Our Pensioners and Establish a New Defined Contribution Plan for Public Servants.” The proposal would allow the Commonwealth of Puerto Rico Employees Association (AEELA by its initials in Spanish) to serve as an alternative administrator for the Defined Contribution Plan, according to a statement issued Monday.

The measure also amends Law 9-2013, which governs AEELA, to create a new membership category. The move would enable current and former public employees from retirement systems -- including System 2000, the Hybrid Defined Contribution Program (Law 3-2013), and Plan 106 -- to remain affiliated with AEELA and continue benefiting from its services even after leaving public service.

“For years, public servants have raised legitimate concerns about the lack of guidance and oversight in managing their accounts under external private entities,” Pérez Ramírez said. “AEELA has proven to be a solid, reliable, and transparent institution that has served public employees with excellence for over a century without relying on taxpayer funds. It’s time to offer them the option to have their savings and contributions managed by a local entity with proven integrity.”

Law 106-2017 established the new defined contribution plan and the Retirement Board, granting participants exclusive ownership of their individual contributions. However, account management was assigned to external entities, creating uncertainty and distrust among public employees.

The proposed legislation aims to provide greater security and financial autonomy by allowing employees to voluntarily transfer their defined contribution accounts to AEELA. The institution has offered economic stability, secure credit, insurance programs, social benefits, and annual dividends to more than 147,000 members for over 100 years.

“This proposal recognizes AEELA’s historic value and strength while reinforcing trust in Puerto Rican institutions,:” the lawmaker added. “It also promotes the protection of individual savings and encourages financial independence for our public servants.”

Pérez Ramírez emphasized that the measure seeks to safeguard public employees’ savings and promote responsible, local management of retirement funds, reaffirming the Legislature’s commitment to economic stability for active and retired government workers.

“This legislation not only provides a safer option but represents an act of justice and respect for those who have dedicated their lives to public service,” she said. “Public servants deserve trust, transparency, and local options that protect the fruits of their labor.”