UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

THE COMMONWEALTH OF PUERTO RICO, et 

al.,

Debtors.1

PROMESA

Title III

No. 17 BK 3283-LTS

(Jointly Administered)

This filing relates to ERS.

REPLY OF THE EMPLOYEES RETIREMENT SYSTEM OF THE GOVERNMENT OF 

THE COMMONWEALTH OF PUERTO RICO TO RESPONSES FILED BY MARIA 

FRANCO SOTO [ECF NO. 18209] AND SONIA N. LÓPEZ BÁEZ [ECF NO. 18875] TO 

THE THREE HUNDRED SIXTY-SEVENTH OMNIBUS OBJECTION (NONSUBSTANTIVE) TO EMPLOYMENT-RELATED CLAIMS ASSERTED AGAINST THE 

INCORRECT DEBTOR

To the Honorable United States District Judge Laura Taylor Swain:

The Employees Retirement System of the Government of the Commonwealth of Puerto 

Rico (“ERS” or the “Debtor”), by and through the Financial Oversight and Management Board for 

Puerto Rico (the “Oversight Board”), as the sole Title III representative of the Debtor pursuant to 

section 315(b) of the Puerto Rico Oversight, Management, and Economic Stability Act

 1 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case 

number and the last four (4) digits of each Debtor’s federal tax identification number, as applicable, 

are the (i) Commonwealth of Puerto Rico (the “Commonwealth”) (Bankruptcy Case No. 17 BK 

3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico Sales Tax Financing 

Corporation (“COFINA”) (Bankruptcy Case No. 17 BK 3284-LTS) (Last Four Digits of Federal 

Tax ID: 8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy 

Case No. 17 BK 3567-LTS) (Last Four Digits of Federal Tax ID: 3808); (iv) Employees 

Retirement System of the Government of the Commonwealth of Puerto Rico (“ERS”) (Bankruptcy 

Case No. 17 BK 3566-LTS) (Last Four Digits of Federal Tax ID: 9686); (v) Puerto Rico Electric 

Power Authority (“PREPA” and together with the Commonwealth, COFINA, HTA, and ERS, the 

“Debtors”) (Bankruptcy Case No. 17 BK 4780-LTS) (Last Four Digits of Federal Tax ID: 3747) 

(Title III case numbers are listed as Bankruptcy Case numbers due to software limitations).

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(“PROMESA”),2 files this reply (the “Reply”) in support of the Three Hundred Sixty-Seventh

Omnibus Objection (Non-Substantive) of the Employees Retirement System of the Government of 

the Commonwealth of Puerto Rico to Employment-Related Claims Asserted Against the Incorrect 

Debtor [ECF No. 17933] (the “Three Hundred Sixty-Seventh Omnibus Objection”). In support 

of this Reply, the Debtor respectfully represents as follows:

1. On August 20, 2021, the Debtor filed the Three Hundred Sixty-Seventh Omnibus 

Objection seeking to reclassify the claims identified in the column titled “Asserted” in Exhibit A 

thereto (collectively, the “Claims to Be Reclassified”), which identify as obligor ERS, when such 

claims are properly asserted, if it all, against the Commonwealth of Puerto Rico (the 

“Commonwealth”). As explained in the Three Hundred Sixty-Seventh Omnibus Objection, 

pursuant to Joint Resolution 188 3 and Act 106 (collectively, the “Legislation”), the 

Commonwealth assumed any obligation to make payments to pensioners or other beneficiaries of 

ERS. Accordingly, any claims asserting an entitlement to pension or other benefits by individuals 

previously participating in ERS properly lie against the Commonwealth or its component agencies. 

Certain claims subject to the Three Hundred Sixty-Seventh Omnibus Objection also asserted 

entitlement to salaries, wage benefits, or alleged employment discrimination purportedly owed by 

the Commonwealth or its component agencies. Such claims are also properly asserted, if at all, 

against the Commonwealth, and not ERS.

2. Any party who disputed the Three Hundred Sixty-Seventh Omnibus Objection was 

required to file a response by 4:00 p.m. (Atlantic Standard Time) on September 20, 2021 in 

accordance with the Court-approved notice attached to the Three Hundred Sixty-Seventh Omnibus 

 2 PROMESA is codified at 48 U.S.C. §§ 2101-2241.

3 Capitalized terms used but not defined herein shall have the meanings ascribed to them in 

the Three Hundred Sixty-Seventh Omnibus Objection

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Objection as Exhibit C, which was served in English and Spanish on the individual creditors 

subject to the Three Hundred Sixty-Seventh Omnibus Objection, the U.S. Trustee, and the Master 

Service List (as defined in the Fifteenth Amended Notice, Case Management and Administrative 

Procedures [ECF No. 17127-1]). See Certificate of Service [ECF No. 17989].

3. The following responses addressing the Three Hundred Sixty-Seventh Omnibus 

Objection were interposed:

• The Reply to Three Hundred Sixty-Seventh Omnibus Objection (Non-Substantive) 

of the Employees Retirement System of the Government of the Commonwealth of 

Puerto Rico to Employment Related Claims Asserted Against the Incorrect Debtor

[ECF No. 18209] (the “Franco Soto Response”) filed by claimant Maria Franco 

Soto (“Franco Soto”), and

• The Motion Submitting Evidence [ECF No. 18875] (the “López Báez Response,”

and together with the Franco Soto Response, the “Responses”), filed by claimant 

Sonia N. López Báez (“López Báez,” and together with Franco Soto, the 

“Claimants”).

I. The Franco Soto Response

4. Franco Soto filed a proof against ERS on May 29, 2018, which was logged by Prime 

Clerk as Proof of Claim No. 16543 (the “Franco Soto Claim”). The Franco Soto Claim asserts

liabilities in the amount of $80,000, purportedly arising from pension contributions made by 

Franco Soto “since 1995.”

5. The Franco Soto Response was filed with the Court on September 22, 2021 and 

docketed as ECF No. 18209 on September 23, 2021. Therein, Franco Soto asserts liabilities in 

the amount of $108,204.18, an increase from those included in the Franco Soto Claim, plus interest 

for pension contributions made during her 19 years as a government employee, which Franco Soto 

contends should have been paid to her “at the time of my disassociation from public service in 

November 2014.” Franco Soto Response at 2. Franco Soto further alleges that the Legislation 

is not applicable to her claim, since the Legislation is “of prospective application to debts 

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contracted after 2017, but not prior to that date, as is my claim.” Id. For that reason, Franco Soto 

contends the Franco Soto claim was correctly filed against ERS. 

6. The Franco Soto Response does not address the Debtors’ contention that, pursuant 

to the Legislation, the Commonwealth has assumed responsibility for the payment of pensions, 

and for that reason, claims asserting entitlement to pension contributions are properly asserted 

against the Commonwealth, and not ERS. Instead, the Franco Soto Response simply asserts that 

the Legislation does not apply to the Franco Soto Claim because it “of prospective application to 

debts contracted after 2017 . . . .” Franco Soto Response at 2. However, contrary to this 

allegation, Law 106 plainly does not limit its application to “debts contracted after 2017.” Rather, 

Law 106 specifically states that all benefit obligations of ERS—including the pension benefits 

purportedly earned by Franco Soto—were to be assumed by the Commonwealth and paid in 

accordance with ERS’s obligation to such beneficiary. Law 106 § 2.3. 

7. Accordingly, liabilities associated with Franco Soto’s pension contributions are 

properly asserted, if at all, against the Commonwealth, not ERS, and the Court should therefore 

reclassify the Franco Soto Claim to be asserted against the Commonwealth. The Debtors reserve 

the right to object to the Franco Soto Claim on any basis whatsoever.

II. The López Báez Response

8. López Báez filed a proof of claim against ERS on May 1, 2018, which was logged 

by Prime Clerk as Proof of Claim No. 9987 (the “López Báez Claim”). The López Báez Claim 

purports to assert liabilities associated with a judgment of divorce by mutual consent, which 

resulted in certain pension liabilities being credited to López Báez.

9. The López Báez Response, a Spanish-language pleading, was filed with the Court 

on October 27, 2021 and docketed as ECF No. 18875 on October 28, 2021. Therein, López Báez

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does not dispute that her proof of claim, which was filed against ERS on May 1, 2018 and logged 

by Prime Clerk as Proof of Claim No. 9987 (the “López Báez Claim,” and together with the Franco 

Soto Claim, the “Claims”), is properly asserted against the Commonwealth, and not ERS. The 

López Báez Response likewise does not dispute that, pursuant to the Legislation, any entitlement 

to pension liabilities would be properly asserted, if at all, against the Commonwealth. Instead, 

the López Báez Response states that the Three Hundred Sixty-Seventh Omnibus Objection 

contends that “I did not submit any evidence of my claim in this child support debt dispute.” 

López Báez Response at 1. However, to the extent López Báez may be seeking liabilities related 

to allegedly accrued but unpaid child support, such liabilities should properly be asserted, if at all, 

against the Child Support Administration (by its Spanish acronym, “ASUME”), which is not a part 

of ERS. 

10. Accordingly, because López Báez does not dispute that the López Báez Claim is 

properly asserted, if at all, against the Commonwealth, the López Báez Claim should be 

reclassified to be asserted against the Commonwealth. The Debtors reserve the right to object to 

the López Báez Claim on any other basis whatsoever.

11. For the foregoing reasons, the Debtors respectfully request that the Court grant the 

Three Hundred Sixty-Seventh Omnibus Objection and reclassify the Claims, notwithstanding the 

Responses.

[Remainder of Page Intentionally Left Blank]

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Dated: February 2, 2022 

San Juan, Puerto Rico

Respectfully submitted,

/s/ Hermann D. Bauer

Hermann D. Bauer

USDC No. 215205 

Carla García Benítez

USDC No. 203708 

O’NEILL & BORGES LLC

250 Muñoz Rivera Ave., Suite 800 

San Juan, PR 00918-1813 

Tel: (787) 764-8181 

Fax: (787) 753-8944 

/s/ Brian S. Rosen

Martin J. Bienenstock (pro hac vice) 

Brian S. Rosen (pro hac vice) 

PROSKAUER ROSE LLP

Eleven Times Square

New York, NY 10036

Tel: (212) 969-3000 

Fax: (212) 969-2900 

Attorneys for the Financial Oversight and 

Management Board as representative for the 

Employees Retirement System of the 

Government of the Commonwealth of Puerto 

Rico

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