Puerto Rico Pension Risks Insolvency Next Year, Audit Says
- Island’s retirement system may run out of cash in fiscal 2018
- Retirement system is 0.27 percent funded, KPMG audit says
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Puerto Rico’s largest retirement plan will run out of money in about a year unless contributions to the system increase, according to the latest audited report.
The commonwealth’s Employees’ Retirement System had only 0.27 percent of funds to cover $30.2 billion it has promised to current and future retirees, according to an audit of the fiscal year ended June 30, 2014, which Puerto Rico filed Thursday to the Municipal Securities Rulemaking Board’s website. The pension system will run out of funds in the fiscal year that begins July 1, 2017, unless it receives more cash.