Palacios urges swift legislative action to protect retirees’ 25%

Gov. Arnold I. Palacios is optimistic that the CNMI Legislature will send him legislation appropriating funds to continue making the 25% pension payments to retirees, but time is running short.

In a letter to Settlement Fund trustee Joyce Tang last Wednesday, Palacios notified her that until these appropriations are made, in light of severe fiscal challenges affecting the government, the 25% pension payments to retirees will be suspended beginning April 15, 2024.

“Since the beginning of this administration, it has been our commitment to continue the 25% payments to the retirees,” Palacios wrote, but added that additional appropriations are needed to continue making these payments.

“My reprogramming authority is currently limited to funds within the Executive Branch, and any further reprogramming for the 25% retiree pension payments will place other critical obligations in jeopardy.”

The House of Representatives recently and unanimously passed HB 23-104 identifying $5.2 million in appropriations to fund this pension payment. The source of funding is dividends paid to the Commonwealth Economic Development Authority on its shares in the Commonwealth Utilities Corp. The bill is now with the Senate. It is undergoing legal review by the Attorney General.

Palacios underscored the urgency of the situation and urged the Senate to prioritize the passage of legislation that would avert the suspension of the 25% retiree pension payments. He added that he welcomes the efforts of the Legislature to address the funding shortfall impacting retirees’ pensions.

“Whether the solution comes from HB 23-104 or in the form of other revenue bills, we need the partnership of the Legislature to protect our retirees’ livelihoods. My administration cannot do this alone,” Palacios said.

“The leaders of the Commonwealth have a collective obligation to safeguard our retirees’ benefits and give them the peace of mind and financial security they deserve,” he added. (PR)