Esta ley aumenta en un tres por ciento (3%) las pensiones otorgadas bajo la Ley Núm. 447 de 15 de mayo de 1951, según enmendada, que entraron en vigor el 1 de enero de 2001 o antes, excluyendo las anualidades otorgadas bajo la Ley Núm. 305 de 24 de septiembre de 1999. Establece que los fondos necesarios para cubrir el costo de este aumento para los pensionados del Gobierno Central provendrán del Presupuesto General de Gastos, mientras que las corporaciones públicas y municipios cubrirán el costo para sus respectivos pensionados.
(Approved June 27, 2003)
To by three percent (3%) the pensions granted under the provisions set forth in Act No. 447 of May 15, 1951, as amended, granted to take effect January 1, 2001 or before, excluding the annuities granted under Act No. 305 of September 24, 1999; to provide the necessary funds to defray the costs for the impact of said increase, and to set forth that the municipalities and public corporations shall pay the cost of this increase in the annuities of those who were their employees prior to becoming pensioners every year.
Act No. 447 of May 15, 1951, as amended, set forth a retirement and benefits system for public employees. The Retirement System, according to the provisions of the law in effect, is a public employee trust for investing and giving custody to the periodic contributions made by the employees and their respective employers to enable them to make the corresponding employee pension or disability payments in the future.
It is hereby acknowledged that, in time, the increase in the cost of living entails a relative diminishing of the value of the annuities of the pensioners. Therefore, it was established by means of Act No. 10 of May 21, 1992, that as of January 1, 1992, and subsequently every three years, all annuities paid by virtue of said Act due to age, years of service, or disability, that are in effect at that date and which had been received during three (3) previous years would be increased by three percent (3%). In this manner, the Government faces the moral obligation of helping improve the living
conditions of the pensioners who gave the best years of their lives to the service of the people of Puerto Rico.
Therefore, in the fulfillment of the duty of the Government to address the needs of the pensioners, it is hereby set forth that pensions granted prior to January 1, 2001, under the provisions set forth in referenced Act No. 447, are increased by three percent (3%).
The necessary funds to defray the cost of said increase with respect to the pensioners of the Central Government shall be appropriated from the General Budget of Expenses of the Commonwealth of Puerto Rico for each fiscal year, starting with fiscal year 2003-2004. The public corporations and municipalities whose employees are covered by this Act shall defray the cost of the pension increase set forth by this Act for the pensioners of their corporation or municipality.
Section 1.- Effective January 1, 2004, the annuities to be paid under Act No. 447 of May 15, 1951, as amended, for merit, age and years of service, or disability that are in effect at said date and which have been granted prior to January 1, 2001, or before, are hereby be increased by three percent (3%).
Section 2.- It is hereby set forth that pensioners under the provisions of Act No. 305 of September 24, 1999, known as the "Retirement Savings Account Program," shall be excluded from the benefits granted by this Act.
Section 3.- The necessary funds to defray the cost entailed by said increase in the pensions with respect to the pensioners of the Central Government shall be appropriated from the General Budget of Expenses of the Commonwealth of Puerto Rico for each fiscal year, starting with fiscal year 2003-2004. The public corporations and municipalities whose employees are covered by this Act shall defray the cost of the pension
increase set forth by this Act for the pensioners of their corporation or municipality.
Section 4.- This Act shall take effect immediately after its approval.
I hereby certify to the Secretary of State that the following Act No. 157 (H.B. 3494) of the $5^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to increase by three percent (3%) the pensions granted under the provisions set forth in Act No. 447 of May 15, 1951, as amended, granted to take effect January 1, 2001 or before, excluding the annuities granted under Act No. 305 of September 24, 1999; to provide the necessary funds to defray the costs for the impact of said increase, and to set forth that the municipalities and public corporations shall pay the cost of this increase in the annuities of those who were their employees prior to becoming pensioners every year, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $15^{ ext {th }}$ of April of 2004.
Elba Rosa Rodríguez-Fuentes Director