Fiscal board, gov’t agree to limit early retirement to some nonessential workers
By The Star Staff
The Financial Oversight and Management Board on Thursday informed the Title III court that it reached an agreement with the government to limit an early retirement program under Act 80 to nonessential workers.
The oversight board said in a statement that it continues to work with Gov. Pedro Pierluisi Urrutia and the Puerto Rico Fiscal Agency and Financial Advisory Authority on a path to partially implementing the early retirement program under Act 80-2020 as modified by the Dec. 28, 2021, order of the U.S. District Court for the District of Puerto Rico.
“Pursuant to a stipulation between the Oversight Board and the Government, the U.S. District Court invalidated Law 80, except as set forth in that order,” the statement said.
The judge at the time annulled the law.
The oversight board informed the court that it agreed to the government’s proposal to limit implementation of the law to certain nonessential governmental employees and is proceeding to work with the government to reach agreement on the terms of such a partial implementation.
The relevant governmental agencies and instrumentalities have certified that the permanent elimination of the agreed-upon positions of employees eligible for early retirement under the partial implementation of Act 80 will not adversely impact the government’s ability to provide essential services to Puerto Rico residents.
“The Government agreed that it will notify the employees holding the agreed-upon eliminated positions by July 28, 2022, that their positions shall be permanently eliminated in accordance with their prior election to retire early unless they affirmatively opt-out of the Act 80 early retirement program by August 15, 2022,” the statement said.
The oversight board and the government continue to work together to reach an agreement on the partial implementation of Act 80 that includes achieving the necessary savings from early retirements of the nonessential employees as well as reporting and monitoring processes and other items by Aug. 25.