Puerto Rico fiscal board: Pension forecasts, projected PayGo payments were understated by $3.35 billion
SAN JUAN – The Financial Oversight and Management Board for Puerto Rico said Friday that after its review of the pension forecasts and projected PayGo payments in the new fiscal plan it had certified on Oct. 23, it concluded that the pension forecasts and projected PayGo payments through fiscal year 2058 were understated by $3.35 billion.
The revisions to the existing pension forecasts result in “no net material impact during the first 20 years of the projections (through 2038), and are concentrated in the last 20 years of projections (2039-2058),” the board said in its release.
The board said it will “further refine” the pension forecasts and projected PayGo payments after it “receives and analyzes more accurate information from the actuaries for the Commonwealth’s pension plans in the coming months.”
The revisions to the pension forecasts, projected PayGo payments and the anticipated “further refinements in the coming months, do not imply any change to the Oversight Board’s pension policy or to pension payments that have been budgeted. Rather, they represent changes to the projected cost for the Commonwealth to make its PayGo payments in the out years,” it wrote.