Title 48 — Territories and Insular PossessionsRelease 119-73not60
§2151 Analysis of Pensions
Title 48 › Chapter 20— PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY › Subchapter II— RESPONSIBILITIES OF OVERSIGHT BOARD › § 2151
Summary
If the Oversight Board finds a territorial pension seriously underfunded, it must get an independent actuary to analyze it. The study must project 30 years of benefit payments and a funding plan, show funding sources, review benefit sustainability and the plan’s legal and operational structure, and report fair market value and liabilities using the discount rate the Board sets.
Full Legal Text
Title 48, §2151
Territories and Insular Possessions — Source: USLM XML via OLRC
(a)If the Oversight Board determines, in its sole discretion, that a pension system of the territorial government is materially underfunded, the Oversight Board shall conduct an analysis prepared by an independent actuary of such pension system to assist the Oversight Board in evaluating the fiscal and economic impact of the pension cash flows.
(b)An analysis conducted under subsection (a) shall include—
(1)an actuarial study of the pension liabilities and funding strategy that includes a forward looking projection of payments of at least 30 years of benefit payments and funding strategy to cover such payments;
(2)sources of funding to cover such payments;
(3)a review of the existing benefits and their sustainability; and
(4)a review of the system’s legal structure and operational arrangements, and any other studies of the pension system the Oversight Board shall deem necessary.
(c)In any case, the analysis conducted under subsection (a) shall include information regarding the fair market value and liabilities using an appropriate discount rate as determined by the Oversight Board.
Reference
Citations & Metadata
Citation
48 U.S.C. § 2151
Title 48 — Territories and Insular Possessions
Last Updated
Apr 5, 2026
Release point: 119-73not60