An overhaul of Puerto Rico's cash-strapped public pension fund was signed into law Thursday by Gov. Alejandro Garcia Padilla, according to a statement on the commonwealth's website.
The revamp of the $2.9 billion Puerto Rico Employees' Retirement System, Hato Rey, will increase worker contributions to the plan, raise the retirement age for some state workers and lower monthly pensions and benefits for some public workers.
The pension fund has an unfunded liability of more than $37 billion for a funding ratio of 7.8%.
All three major credit ratings firms recently downgraded Puerto Rico's bond ratings to just above junk-bond status, pointing to widening budget deficits.
Officials at Mr. Garcia Padilla's office did not return calls by press time seeking details.