SENATE President Jude U. Hofschneider on Monday said it has always been the objective of lawmakers, especially the Senate leadership, to fully fund the retirees’ 75% benefits as mandated by the settlement agreement, and the 25% allocated by the administration.
He noted that the Budget and Planning Act provided Gov. Ralph DLG Torres with a 25% reprogramming authority to fund needed public programs and services.
Hofschneider lauded the administration for committing to the payment of the retirees’ 25% despite the discontinuation of the $15 million annual casino license fee.
The license fee paid by Imperial Pacific International was the source of funding for the retiree pension.
Hofschneider said CNMI law allows the governor to ensure that after the end of this year, there will be a mechanism in place to completely fund the retirees’ pension for the remaining three quarters of Fiscal Year 2023.
“Underneath that, we can also make it clear in the budget provisions to recognize the authority of the governor,” he said, emphasizing that there is a need to pay the retirees’ 25% benefit.
During a Senate session last week, minority bloc Sen. Paul A. Manglona proposed a floor amendment to House Concurrent Resolution 22-2, which pertains to the FY 2023 budget, to “reserve” $13 million for the retirees’ 25% benefit.
But according to Senate legal counsel Antoinette Villagomez, the responsibility to allocate the amount as proposed by Senator Manglona “falls in the hands of the governor.” She said only the governor can identify revenues for allotments.
Senate President Jude U. Hofschneider, Senate Vice President Justo Quitugua, Senate Floor Leader Vinnie Sablan, Sens. Karl King-Nabors and Victor B. Hocog voted against the floor amendment.
Besides Manglona, the two other members of the minority bloc, Sens. Edith Deleon Guerrero and Teresita Santos, voted yes.
Jude U. Hofschneider
