SAN JUAN, Puerto Rico When Puerto Rico attempted to shore up its chronically underfunded public-employee pensions in 2013, Francisco del Castillo knew grown men and women who wept.
Under the reform package, retirement ages rose. So did employee contributions. Current and future participants were transferred to less-generous defined-contribution accounts, similar to 401(k) retirement savings plans. Del Castillo, then the deputy chief of the islands largest government-employee pension system, said members of his own staff who were on the verge of retirement suddenly faced the prospect of working seven or eight more years for reduced benefits.
The law extracted a pound of political flesh from those, like del Castillo,…
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