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RCS 88

Para ordenar al Secretario de Hacienda a redirigir al Fideicomiso para el Retiro de la Policía creado mediante la Ley 40-2020, por un término de doce (12) meses, los fondos destinados al amparo de la Sección 4050.09 del Código de Rentas Internas de Puerto Rico de 2011, actualmente dirigidos al Fondo de Mejoras Municipales, y para otros fines relacionados.

2025-2028 Session

Bill redirects municipal improvement tax revenues to police retirement fund for 12 months but was defeated in Senate vote.

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Bill Summary · RCS 88

Legislative bill overview

Bill RCS 88 proposed redirecting funds from Section 4050.09 of Puerto Rico's Internal Revenue Code (currently allocated to the Municipal Improvements Fund) to the Police Retirement Trust Fund created under Law 40-2020 for a 12-month period. The bill was introduced in the Puerto Rico Senate but was defeated on first reading through a voice vote on September 8, 2025.

Why is this important

Police pension funding is a critical long-term fiscal issue in Puerto Rico, as unfunded retirement liabilities significantly strain the commonwealth's budget. Redirecting municipal improvement funds to address pension obligations reflects tension between infrastructure development and mandatory benefit payments that impact both local governments and retirees.

Potential points of contention

  • Municipal impact: Diverting funds from the Municipal Improvements Fund would reduce resources available to municipalities for infrastructure projects, potentially affecting local services and economic development
  • Fiscal precedent: Temporarily redirecting dedicated tax revenue sets a precedent for using designated funds outside their original purpose, raising questions about budget reliability
  • Sustainability: A 12-month redirection addresses immediate pension pressures without providing a long-term solution to Puerto Rico's structural pension funding crisis

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

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