On June 30, 2016, President Obama signed into law the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), which, among other things, provides a mechanism for restructuring the debts of Puerto Rico. As a new law, it is not entirely clear how it will be implemented. In particular, it is unclear how and when the retiree community will participate in the debt restructuring negotiations and related activities. However, because the retiree community has much at stake in this financial crisis, it must actively ensure that it has a voice and an opportunity to play a constructive role in the restructuring process.
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PROMESA and Retiree Benefits: The Need for Vigilance and a Voice