Retired PREPA workers warn their pensions are “in check” amid possible overhaul
By THE STAR STAFF
Retirees of the Puerto Rico Electric Power Authority (AEE) are sounding the alarm over potential changes to their pension system, saying the future of their retirement benefits has become increasingly uncertain as the Fiscal Oversight and Management Board (FOMB) moves forward with the utility’s debt restructuring.
Johnny Rodríguez, president of the AEE Retirees Association, said Thursday on Pega’os en la Mañana radio program that the group fears its pension system could be dismantled once the debt adjustment plan is finalized. He argued that recent discussions about recalculating pension formulas are a red flag.
“When those things happen, it’s usually because they’re going to cut benefits,” Rodríguez said. He added that retirees worry the restructuring could mirror changes imposed years ago on the Puerto Rico Police retirement system, where some officers were forced to return to work because their pensions were no longer sufficient.
“According to the information we have, once the debt adjustment plan is approved, they’re going to tear apart our retirement system with the threat—who knows—of making it disappear,” Rodríguez said. “We’ve looked at the example of the Police, and we don’t want to end up in the same situation.”
Rodríguez also warned that retirees have no clarity on who would ultimately manage or fund their pensions. If the Junta de Cívicos—the body that currently administers the AEE retirees’ pension fund—is dissolved, he said it would be replaced by an external board with only one representative from the retirees.
“That would leave us without the ability to push for benefits,” he said.
Asked whether the retirement system is truly “in check,” Rodríguez did not hesitate: “It is, and that’s something we will not allow under any circumstance.”
