Puerto Rico civic workers’ pension system could collapse
SAN JUAN, Puerto Rico (AP) — An audit has found the retirement system covering most Puerto Rico government employees could run out of money by next year.
The report released Friday warns the pension plan has a $30 billion liability. The audit covers financial statements for fiscal year 2013-2014.
It also says the island’s retirement system for judges has a $456 million liability, but is not in imminent danger of failing. A third retirement system for teachers was not covered by the audit.
Puerto Rico’s governor and other officials have warned the three pension systems are running out of money. Legislators have approved new laws to help bolster the systems’ financial state.
The U.S. territory is in a 10-year economic slump and seeking to restructure $70 billion in public debt the governor has said is unpayable.