Puerto Rico updated fiscal plan directs $10.3 billion to pension trust
Puerto Rico can avoid budget deficits for the next quarter century because federal funds will help drive economic growth on the island as it exits bankruptcy, the commonwealth’s congressionally appointed financial oversight board said.
The board Thursday unanimously approved a revised multiyear fiscal plan that incorporates federal funds that Congress authorized in the last year, an increase in federal Medicaid funding that’s expected to save Puerto Rico $6 billion through fiscal 2026, and a new pension reserve trust that will help ease stress on the island’s budget.
Those changes mean the commonwealth won’t face potential budget deficits until fiscal 2048, according to Natalie Jaresko, the board’s executive director. Earlier estimates pegged deficits to begin in fiscal 2036.
It plan incorporates Puerto Rico directing $10.3 billion during the next 10 years to a new pension reserve trust. That new fund will ease future commonwealth budgets as the island spends about $2.3 billion annually to cover benefits to public workers because the retirement fund is depleted.
Read more @Pionline
440 views
