Puerto Rico rejects pension cuts sought by federal board

[Judi Lynn]

Puerto Rico rejects pension cuts sought by federal board
The Associated Press
Danica Coto
March 23, 2018
6:15 PM EDT

Last Updated
March 23, 2018
6:44 PM EDT

SAN JUAN, Puerto Rico — Puerto Rico government officials said Friday they will not bow to demands from a federal control board overseeing the island’s finances that they implement cuts to a struggling public pension system as part of an upcoming fiscal plan to help pull the U.S. territory out of an economic crisis.

Gov. Ricardo Rossello told reporters the biggest disagreement between his administration and the board is over a proposed average 10 percent cut to pensions of more than $1,000 a month paid by a system facing nearly $50 billion in liabilities.

Christian Sobrino, the governor’s representative to the board, defended the government’s revised fiscal plan and said it would generate a $5.5 billion surplus in upcoming years and help reverse the economic slump while avoiding the elimination of vacation or sick days and reductions in maternity leave, among other things he said the board has proposed.

“We’re not talking about business as usual here in Puerto Rico,” Sobrino said. “The fiscal plan recognizes the island’s fiscal and demographic spiral. If we don’t stop it, the game is over. Puerto Rico will be a footnote in the history of the Caribbean.”

More:
http://nationalpost.com/pmn/news-pmn/puerto-rico-rejects-pension-cuts-sought-by-federal-board

LBN:
https://www.democraticunderground.com/10142022312

[procon]

1. Were the same demands made of other US cities affected by major disasters?

This resembles something like what those unelected emergency managers that Republicans installed in Michigan would do. They were good at battering down democracy and replacing popular Democratic policies with the harsh austerity the GOP favors, but its a slap in the face to workers who put the whole lives into a job expecting to earn a decent pension for their retirement.