Summary of PS 1074 (Session 2025-2028) – Puerto Rico
Purpose and intent
- PS 1074 seeks to amend Articles 4, 11, and 11-A of Law No. 9 of April 25, 2013 (as amended), known as the “Law of the Association of Government Employees of Puerto Rico” (AEELA).
- The core aim is to make AEELA membership and contributions to the AEELA Savings and Loans Fund voluntary, and to require prior, express, and verifiable authorization for any payroll or pension deductions related to AEELA. The bill also addresses related administrative and enforcement aspects.
Key provisions and changes
1. Article 4 (Membership) – Voluntariness and enrollment
- Membership in AEELA would be strictly voluntary.
- A government employee would not automatically become a member merely by virtue of employment or pension receipt.
- In addition to applying and being accepted, members must provide prior, express, verifiable authorization for related deductions or payments.
- The enrollment categories are described, beginning with “Acreedores/asegurados” (insured members) for those who contribute to the Savings and Loans Fund and are admitted to AEELA’s death and service years insurance, with further categories to be specified.
Article 11 (Savings and Loans Fund) – Voluntary contributions
- The current obligation for contributions to the AEELA Savings and Loans Fund would become voluntary.
- Previously mandated deductions would require prior, express, and verifiable authorization from the member.
- Members may authorize flexible contribution levels; the standard deductible amount can be increased only after one year of authorization, and it cannot be less than 3% unless a higher amount is explicitly authorized.
- Employees or retired members who contribute above 3% may withdraw excess contributions if needed (subject to non-encumbered loan status).
Article 11-A (Duties of Government Entities; Sanctions)
- Government entities must deduct and remit savings contributions, loan payments, insurance premiums, and other related payments as authorized by the member.
- Deductions not tied to a current contractual obligation require prior, express, and verifiable authorization.
- Deductions must be remitted to AEELA within 20 business days after the month in which they are withheld.
- Entities failing to deduct or remit would be liable for the full amounts, with interest at the legal rate, and would face collection procedures established by AEELA.
- Entities that do not remit on time bear interest payable to AEELA and may incur enforcement actions per AEELA’s regulations.
Separability and effective date
- If any provision is found unconstitutional or invalid, the remainder remains in effect.
- The act would take effect immediately upon approval.
Impact and who is affected
- Public employees, retirees, and AEELA members would be directly affected, as membership becomes voluntary and payroll/pension deductions require explicit consent.
- Government agencies and retirement systems would shift from mandatory to consent-based processing of AEELA-related deductions and remittances.
- The bill strengthens autonomy and consent in union-like membership and associated savings services, while maintaining mechanisms to ensure compliance and administration of existing obligations where consent is provided.
Status
- First reading and referral to Government Committee with subsequent amendments filed (as of mid-February to April 2026). Final enactment would depend on legislative process and votes.
