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RS 389

Para ordenar a la Comisión de Seguridad Pública y Asuntos del Veterano del Senado de Puerto Rico realizar una investigación en aras de determinar qué sucede con las aportaciones y dividendos ganados, como parte del Plan de Retiro Mejorado de la Policía, si un miembro de la Policía de Puerto Rico se separa definitivamente del servicio antes de retirarse.

2025-2028 Session

The bill orders a Senate investigation to determine how contributions and earnings in the Police Improved Retirement Plan are handled if an officer leaves service before eligibilit

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Bill Summary · RS 389

Summary of Bill RS 389 (Session 2025-2028, Puerto Rico)

Basic Information

  • Title: Resolution to order the Senate Public Safety and Veterans Affairs Committee to conduct an exhaustive investigation into what happens to the contributions and earnings/dividends generated under the Police Improved Retirement Plan when a Puerto Rico Police Department member permanently leaves service before retirement.
  • Sponsor: Senator Matías Rosario
  • Committee Referal: Internal Affairs (Comisión de Asuntos Internos) — with actions by Public Safety and Veterans Affairs Committee.
  • Introduced / First Reading: January 7, 2026
  • Status as of provided material: First report filed by the committee and endorsed with amendments; entirillado (ira in electronic format) completed; referred to Rules and Calendar.

Purpose and Intent

  • The bill seeks to mandate an investigation by the Senate Public Safety and Veterans Affairs Committee to determine what occurs to:
    • the voluntary retirement plan contributions made by police officers
    • the dividends or earnings generated by those contributions
    • in the event that a Police Department member permanently leaves service prior to retirement eligibility under the Police Improved Retirement Plan
  • The underlying motivation is to address uncertainty and perceived gaps in protections for officers who exit before retirement, amid broader concerns about police retirement benefits, funding, and personnel shortages.

Key Provisions

  1. Order of Investigation:

    • The Senate Public Safety and Veterans Affairs Committee must conduct a comprehensive inquiry into the treatment of contributions and their earnings/dividends under the Police Improved Retirement Plan when an officer exits the police service permanently before retirement.

  2. Procedural Tools for the Committee:

    • The Committee is empowered to:
      • Hold public or executive hearings
      • Subpoena or compel testimony from officials, experts, and witnesses
      • Request information, documents, and tangible objects
      • Conduct site visits (inspections)
      • Use any other appropriate means to fulfill the investigative mandate
    • These actions are authorized in accordance with Article 31 of the Puerto Rico Constitution (Código Político de Puerto Rico de 1902).

  3. Deliverables and Timeline:

    • The Committee must produce a final report detailing:
      • Findings and conclusions
      • Recommendations
      • Any proposed legislative or administrative actions
    • The report is due within 180 days (six months) after the resolution’s approval (note: the text mentions “ciento ochenta (180) veinte (120) días,” which seems to contain a drafting inconsistency; the intended normal phrasing is 180 days; the action history references 180 days).

  4. Effective Date:

    • The resolution takes effect immediately upon approval.

Who Would Be Affected

  • Police officers (Puerto Rico Police Department) and potentially other personnel covered by the Police Improved Retirement Plan, including:
    • Active officers who may depart the force before qualifying for retirement
    • Retired or inactive officers whose accounts are tied to the plan’s defined-contribution structure
  • Plan Administrators and Related Agencies: Those responsible for managing the Police Fideicomiso para el Retiro (Police Retirement Trust) and the broader Operational framework of the Improved Retirement Plan.
  • General Public/Taxpayers: Indirect impact through potential changes to retirement plan administration, disclosures, and possible legislative or administrative actions arising from the investigation.

Background Context (Summary of Provided Exposition)

  • Puerto Rico has faced concerns about police retirement benefits, staffing shortages, and morale.
  • The switch from a traditional pension system to a defined-contribution-based plan (with the General Fund absorbing shortfalls when needed) created uncertainties about what happens to individual contributions and accrued earnings if an officer leaves before retirement.
  • Existing laws (notably Law No. 106-2017, Law No. 40-2020, Law No. 81-2020, and Law No. 42-2024) established a defined-contribution framework and a Police Retirement Trust, and aimed to restore certain retirement benefits for officers, firefighters, and custody officers. This resolution seeks to clarify fiscal and administrative treatment in cases of early separation.

Impact and Implications

  • Clarification of Rights: The investigation aims to clarify whether and how participants’ contributions and investment earnings are allocated, preserved, or disbursed upon early separation.
  • Policy Guidance: Depending on findings, the Legislature may propose amendments to retirement plan statutes or administrative procedures to improve fairness, transparency, and financial stability.
  • Administrative Oversight: Increased scrutiny of how the Police Improved Retirement Plan interacts with the Police Retirement Trust and related welfare programs.

Notes for Readers

  • The bill is procedural in nature: it does not itself change pension law but authorizes a formal investigation and reporting process.
  • The timeline for the final report is 180 days from approval, after which the Senate may consider recommended actions.

Compiled from official sources — confirm details with the bill’s official record.

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