During a meeting with senators on Friday, Guerrero said the board will continue to implement its across-the-board retirement freeze on personnel whose agencies are delinquent in their contributions.
The administration and lawmakers are asking the Fund to lift the moratorium.
“Our stand is as long as you’re delinquent in employer’s contribution then your employees are not qualified to retire,” Guerrero said. “This is across-the-board because the Fund is losing $60 million a year because of this deficiency.”
He said each year the Fund is withdrawing between $40 million and $45 million from its investments just to meet its obligations to retirees.
Every year approximately 70 to 80 government employees are applying for retirement.
The central government now owes the Fund approximately $164 million.
Guerrero said a piecemeal or supplemental payment from the central government every year is not acceptable.
“Why not pay us in full? If we accept piecemeal payments, we’re cutting short the life of the Fund,” he said.
According to Guerrero, the administration and the Legislature are offering a “compromise” deal.
“They’re asking about the possibility of a pro-rate,” he said. “If the employer’s contribution says they’re in 72 percent we will retire them at 72 percent.”
The Fund’s lawsuit against the government remains pending in court.
Guerrero said a court decision will resolve other issues involving the Fund.
“We also understand that anybody can sue us and we probably welcome that because we want the court to resolve it,” he said.
