Guam – Appropriations Committee Chairman Senator Ben Pangelinan has introduced a bill that he says will pay off the COLA liability once and for all.
A release from the Senator’s office states that Bill 492 would:
“…provide a structured financing mechanism for the payment of outstanding court ordered COLA awards and allow the Government of Guam Retirement Fund (GGRF) to utilize funds currently held in reserve for unclaimed awards to pay outstanding liabilities to identified COLA recipients.
“Bill 492 allows the retirement fund to use funds already set aside for the court ordered COLA Class to provide financial relief for claimant awards ready for distribution. In addition, the proposed bill authorizes the Governor to package the cola certificates and sell them to the retirement fund, individual investors and banks to once and for all pay off the remaining COLA obligation which provides resolution to this dark chapter of our island’s history” Pangelinan stated.
The proposed legislation will allow the Governor of Guam to issue General Obligation Promissory notes for payment of outstanding COLA claims as indentified in Superior Court Case No. SP0206-93. The proceeds from the sale of the promissory notes will be dedicated to the payment of these outstanding liabilities. A continuing appropriation will be set in statute to guarantee a structured permanent funding source for repayment of the promissory notes.
“The proposed legislation presents a win-win situation for the Government of Guam. By quickly paying COLA recipients the Government of Guam benefits through cost avoidance from additional litigation as a result of continued delays in payment. Likewise providing a dedicated financing source for COLA, allows a structured permanent solution to be put in place.”