Puerto Rico Gov’t Starts Reconciliation Process for Potential Creditors’ Claims
Potential creditors will be notified by letter about the reconciliation process after claiming pension payments
Gov. Wanda Vázquez and Omar Marrero, executive director of the Puerto Rico Fiscal Agency & Financial Advisory Authority.
Omar Marrero, executive director of the Fiscal Agency and Financial Advisory Authority (AAFAF by its Spanish acronym), informed that as part of the debt structuring process under Title III of PROMESA, additional notifications will be sent within the next days to certain potential creditors who previously filed their claims against the government of Puerto Rico, the Puerto Rico Employees Retirement System, the Highway and Transportation Authority, and the Electric Power Authority.
These notifications will be sent by postal mail and are related only to the administrative reconciliation process of potential creditors’ claims. These claims were examined by the debtors’ agents.
Marrero explained that the potential creditor’s claim will be adjudicated using the existing administrative processes of the government of Puerto Rico and described in the order that authorizes the process of the Administrative Claims Reconciliation (RRA by its Spanish initials).
“The notification that approximately 1,000 people will receive will be to verify whether or not the potential creditor challenges the amount of their pension or if they have an independent claim against the Retirement System, not related to their right to receive a pension. Any creditor can determine the amount of the pension payment that the System anticipates today that you will receive, consulting the most recent pension benefit statements,” the official said.
These notifications are carried out by order of the Federal Court and do not affect the timely and adequately filed claims. These procedures are led by the Financial Oversight and Management Board (FOMB), as the representative of the debtors in the procedures under Title III of PROMESA. The aim to be able to manage administratively those claims of potential creditors that in effect challenge the amount of their pension.
Marrero added that if the potential creditor does not contest the amount of their pension payment or does not have an independent claim, then no other action has to be taken and the claim will be considered resolved.
“This notification is not a determination that the claimant is not entitled to receive a pension, nor does it affect in any way the total amount of the pension to which the potential creditor will be entitled, in due course. The public policy of the Wanda Vázquez Garced administration continues to be that pensioners should not receive cuts in their pensions,” he said.
If the potential creditor does not contest the amount of their pension payment or have an independent claim against the System, they must acknowledge this fact by completing the form that accompanies the notification.
Moreover, if the potential creditor challenges the amount of their pension payment, they must respond to the notification received, fill out a short form, share all the requested documentation, and show the amount of the pension payment that the potential creditor understand corresponds to them.
For more information, contact Prime Clerk at (844) 822-9231 between 10 a.m. and 7 p.m., or send an email to email@example.com. Click here to view the documents related to legal proceedings.