Historically, retirement systems were responsible for the payment of retirees’ pensions. However, in 2017, the retirement systems lacked sufficient liquid assets to pay the pensions. As a result, on August 23, 2017, Act 106 was approved, through which pensions are paid with funds from the Commonwealth’s General Fund (for Central Government retirees), and municipal, public corporations and public agencies (for retirees who are not from the Central Government). 

 

Currently, the Government of Puerto Rico is the entity that sends pension payments to pensioners, an expense that public corporations, municipalities, and public agencies must reimburse to the Government. This reimbursement for the payment of pensions is known as the PayGo Fee. 

 

 

Among the obligations of the Pension Benefits Council are monitoring the collection of PayGo Fees and authorizing disbursements of funds from Pension Reserve once all established requirements have been met. Benefits Council are monitoring the collection of PayGo Fees and authorizing disbursements of funds from Pension Reserve once all established requirements have been met. 

 

In this section, you’ll find a link to the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) website where, as a financial agent of the Government of Puerto Rico, it publishes reports concerning PayGo Fees.