He said his bill will provide government employees with a safety net when they retire.
The chamber, however, said H.B. 16-201 will be costly to the government and should not be passed.
Hofschneider, R-Saipan, said the chamber did not do its homework.
The government continues to spend more on employees who are “hanging on” because if they retire now their annual pensions will push them below the poverty line.
Under the law, most government employees who get an average of $30,000 or less annually will get only about $17,000 in annual pension.
The poverty line is $19,000.
Hofschneider said his bill will reduce the size of the government and its budget, and provide for a one-time bailout of government obligations to the Retirement Fund.
The bill states that those who have served the government for 20 years will be qualified to retire and those with 18 years or more will be given the equivalent of up to two years to qualify for retirement.
This way, Hofschneider said, the government will not only trim its payrolls cost but will also gradually meet its obligations to the Retirement Fund.
Hofschneider challenged the chamber of commerce to come up with a better proposal.
