SAN JUAN, Puerto Rico – Puerto Rico's treasury secretary is proposing what she calls "severe" cost-saving measures designed to help rescue one of the U.S. territory's public pension systems that is on the brink of collapse.
Melba Acosta is calling for increased employee contributions, a higher retirement age and reduced benefits and monthly pensions for certain workers.
Acosta also proposes reducing bonuses and medical plan contributions, but says minimum monthly pensions should rise from $400 to $500. The plan also calls for transferring certain employees from a defined-benefit plan to a hybrid plan that includes a defined contribution component.
The plan will be submitted to legislators this week. Gov. Alejandro Garcia is expected to sign it if lawmakers approve the plan.