February 25 – By THE STAR STAFF
The Puerto Rico Electric Power Authority (PREPA) charges customers $1.92 per kilowatt-hour (kWh) to fund its Employees Retirement System. However, PREPA only pays out the amount needed each month for its 12,000 pension beneficiaries and keeps the rest, according to Johnny Rodríguez Ortiz, president of PREPA’s Retirees Association.
If PREPA contributed the full amount collected, the retirement system could build up its reserves and reinvest the surplus. Over time, this would strengthen the fund, ensure timely pension payments, and eliminate the constant worry retirees face about receiving the money they need for essentials, Rodríguez said.
He went on to note that PREPA serves 1.4 million customers. “Suppose customers use 1,000 kilowatt-hours; that would generate about $30 million, but on average, we paid out only $24 million in pensions,” he said. “Where is the rest of the money?”
The pension system covers 12,000 beneficiaries, including 2,000 former PREPA employees who now work for other agencies but still contribute to the plan. Currently, PREPA has just 117 active employees, and no new participants are entering the system.