She said the changes in the retirement contributions paid by PSS are beyond the control of the school system.
A new law reduces the mandated employer’s contribution rate from 18 to 11 percent.
The Retirement Fund is now charging PSS about $5,000 in interest and penalty each month.
“We are going to urge the Retirement Fund to waive the interest and penalty for the portion that is the balance between what we are required legally to pay [11 percent] and what was set by an actuarial study which considerably more,” Blanco-Maratita said.
“This issue is beyond the control of PSS so we are requesting that the interest and penalty be waived,” she added.
The interest and penalty affect the teachers paid with federal funds, she said. “The additional amount [that the Retirement Fund wants to collect from PSS] is unfunded and thus we have to come up with local funds to meet this unfunded liability.”
She said the additional funds must be appropriated by the Legislature.
BOE Vice Chairman Herman T. Guerrero, during a special board meeting, said their request for a waiver or suspension of the interest is for the welfare of the retiring teachers.
Retirement Fund has said that it will stop the processing of the retirement of employees whose employers are delinquent in remitting contributions.
The central government now owes the Retirement Fund some $164 million.
