Calvo’s budget bills containing the $343 bond-borrowing proposal do not incorporate a provision to pay back the Fund, but the Legislature’s substituted bill, which included the $180 million bond-borrowing proposal, recognized the money owed to the Fund.
Substituted Bill 145, which was vetoed by the governor and failed to garner an override in the Legislature, is still pending another override attempt, said Sen. Rory Respicio.
If a bond measure is passed which does not pay down the outstanding contributions plus interest, the Fund contends that the Health Insurance Bailout Agreement would be breached.
In a letter to Sen. Ben Pangelinan, appropriations chairman, the Retirement Board threatened it can refuse to pay new benefits if unfunded or underfunded, pursuant to actuarial standards.
