Puerto Rico's gov says no layoffs or pension cuts in major rebuke of federal control board demands

People watch television powered with the help of a generator, as Puerto Rico Governor Ricardo Rossello addresses the nation in a televised speech, in Toa Baja, Puerto Rico February 5, 2018. (REUTERS/Alvin Baez)

SAN JUAN, Puerto Rico – Puerto Rico's governor is defying the federal control board overseeing the island's troubled finances.

Ricardo Rossello says he will submit a fiscal plan to the board on Thursday that will not contain any layoffs, reductions in pensions or a labor reform.

The announcement late Sunday defies the board's demands that the U.S. territory implement a labor reform and a 10 percent cut to a pension system facing nearly $50 billion in liabilities.

A board spokesman did not immediately respond to a request for comment.

Public Affairs Secretary Ramón Rosario told NotiUno radio station on Monday that the board cannot impose public policy in Puerto Rico and asked members to reach a consensus with the island's government.