Puerto Rico Gov. Pedro R. Pierluisi signed into law a bill preventing future cuts to pension payments.
The bill, HB 120, rejects cuts to pension benefits proposed by Puerto Rico's Fiscal Oversight Board, which Mr. Pierluisi said in a news release that there is "no fiscal or legal justification" for its proposed cuts.
Mr. Pierluisi added in the release that he found the cut proposed by the board "unfair because it affects the finances of thousands of former public servants who would suffer another blow to their pensions, all due to a legal whim of the board."
The governor also noted that the newly signed law "is significantly inconsistent with the certified fiscal plan" and violates the Puerto Rico Oversight, Management, and Economic Stability Act, which established a process for combatting Puerto Rico's debt crisis.
Regardless of the conflict, Mr. Pierluisi signed the bill in the hope "that the board reconsider its insistence on cuts to pensions, which are unnecessary, both legally and fiscally."
A Fiscal Oversight Board spokesman could not be immediately reached for comment.
