Previous Story
Senate passes PSS exemption bill
|
Posted on Sep 07 2005
Despite objections from the NMI Retirement Fund, the Senate passed yesterday a bill that aims to exempt the Public School System from paying an increased rate in employer retirement contributions.
The Fund increased this year the government’s rate contribution from 24 percent to 36.7 percent, as recommended by a 2003 actuarial study.
Senate majority leader Paul Manglona said members passed the bill “reluctantly.”
“To me it’s not right but we reluctantly passed it to help PSS. But it’s only a bandage solution. What PSS needs is a new budget to accommodate its needs,” said Manglona.
The measure, House Bill 14-369, received seven “yes” votes and two abstentions by senators Diego Songao and Luis Crisostimo.
The bill, authored by Rep. David M. Apatang, aims to extend the exemption for PSS by five years.
Present in yesterday’s session was PSS federal program advisor Tim Thornburgh.
Fund administrator Karl T. Reyes and division manager Mariano Taitano also came during the session.
Reyes had warned that passing such a bill would prompt other agencies to ask for a similar action. “It will be the Fund that [will] suffer,” he said.
Reyes said the Fund has already delayed the implementation of the rate increase for two years in consideration of the current economic situation but he said that it is necessary now to keep the integrity of the Fund.
The bill now goes to the governor for action.
