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Judge denies another union request to stop fiscal board from cutting pensions

By on April 19, 2017

SAN JUAN – A federal judge has denied a third motion for a temporary restraining order filed by United Public Servants, one of Puerto Rico largest unions, to stop the Financial Oversight and Management Board from cutting public pensions.

“Because the current deadline for the pension ‘system overhaul’ is June 30, 2017, and because plaintiffs have failed to establish that any change to the current pension system will occur before then, plaintiffs have failed to demonstrate that ‘irreparable injury, loss, or damage will result to [them],’” federal Judge Francisco Besosa wrote Tuesday.

United Public Servants said the fiscal plan proposed for Puerto Rico violates a law protecting the pension system as well as constitutional guarantees involving contracts between the government and retirees. The union represents more than 10,000 government workers and 2,300 retired ones.

The union accused the fiscal board of creating an uncertain path for Puerto Rico’s future as the island struggles to emerge from its economic recession.

The union filed a request for a temporary restraining order, which was later modified, but Besosa denied the request because certain documents were not filed in English.

 

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