Title 48, Territories and Insular PossessionsRelease 119-110

§2151 Analysis of Pensions

Title 48 › CHAPTER 20 — PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY › SUBCHAPTER II — RESPONSIBILITIES OF OVERSIGHT BOARD › § 2151

Last updated Sep 22, 2026|Official source

Summary

When the Oversight Board decides a territory’s pension system is seriously underfunded, it must hire an independent actuary to study the system and its cash flows. The study must include a long-term actuarial report with at least 30 years of projected benefit payments and a plan to pay them; where the money would come from; a check of current benefits and whether they can be sustained; and a review of the plan’s legal and operational setup plus any other studies the Board needs. The analysis must also show the plan’s fair market value and liabilities using a discount rate set by the Oversight Board.

Full Legal Text

Title 48, §2151

Territories and Insular Possessions, Source: USLM XML via OLRC

(a)Determination

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)Provisions of analysis

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)Supplementary information

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

Sep 22, 2026

Release point: 119-110