GUIDELINES FOR THE GOVERNANCE, ADMINISTRATION, AND MONITORING

OF THE PUERTO RICO PLAN OF ADJUSTMENT FOR THE PREPA PAYGO TRUST

I. INTRODUCTION; PREPA PAYGO TRUST

1.1 Purpose: In connection with the Modified Second Amended Plan of Adjustment for the 

Puerto Rico Electric Power Authority (as amended from time to time and confirmed by the Title III 

Court, the “Plan of Adjustment” or “Plan”),

1 the accrued and future obligations of the Puerto Rico 

Electric Power Authority (“PREPA”) to make employer contributions to the PREPA ERS to fund 

defined benefit retirement payments to PREPA’s retirees will be adjusted such that (a) no further 

defined benefits for Active PREPA ERS Participants shall accrue from and after the Effective Date, 

(b) no further cost of living adjustments shall accrue to any active or retired Participant in the PREPA 

ERS, and (c) PREPA shall reimburse the PREPA ERS on an annual or other periodic basis for 

payments made to its retirees on a pay-as-you-go (PayGo) basis. The Plan provides for the creation 

of a new trust, the Puerto Rico Electric Power Authority PayGo Trust (“PayGo Trust”) for the 

purpose of receiving periodic PayGo payments from PREPA, reviewing requests for reimbursement 

of pension payments from the PREPA ERS, and making reimbursement payments to the PREPA ERS 

for payments that are consistent with and limited by the treatment of the claim of the PREPA ERS as 

provided in the Plan. The guidelines set forth herein (the “Guidelines”) and the PREPA PayGo Trust 

Deed of Trust to which the Guidelines are appended provide for the creation and governance of the 

PayGo Trust, as set forth below. These Guidelines will be included in the Plan Supplement, and the 

terms and conditions set forth herein shall be incorporated into the PayGo Trust Deed of Trust, which 

will be executed and put into effect on or before the Plan Effective Date. The PayGo Trust shall operate 

on a July 1 to June 30 fiscal year.

1.2 Responsibilities of the PREPA PayGo Trust Board: The PREPA PayGo Trust Board of 

Trustees (the “Board”), among other things, shall have the sole responsibility for the collection, 

custody, administration, investment, and distribution of the funds held in the PayGo Trust.

1.3 Term of the Board: The Board shall exist until thirty (30) calendar days after the termination 

of the PREPA PayGo Trust in accordance with Section 6.2.

1.4 Account Structure and Initial Funding of the PREPA PayGo Trust:

A. Account Structure of the PREPA PayGo Trust: The PREPA PayGo Trust shall include 

(i) investment accounts, and (ii) an account for administrative and operating expenses 

of the Board to be included in the total assets of PREPA PayGo Trust. The Board shall 

have the authority to establish additional accounts as deemed necessary in the exercise 

of the Board’s duties. All such accounts shall be in the name of the PayGo Trust and 

controlled by the Board. 

B. Initial Funding: Upon the Effective Date, PREPA shall deposit an initial funding of 

$1,000,000.00 as provided in the Plan into the PREPA PayGo Trust’s administrative 

and operating account after the establishment of such account by the Oversight Board

pursuant to Section 4.7(A).

1.5 Responsibilities of PREPA and PREPA ERS: PREPA shall make contributions to the PREPA 

PayGo Trust in accordance with the Plan. PREPA ERS shall maintain all documentation of all retiree 

1 Any capitalized terms not defined herein shall have the respective meanings ascribed to such terms in the Plan of 

Adjustment.

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benefit payments, including supporting calculations associated with any new annual benefits, and its 

administrative expenses paid during each fiscal year of the PREPA PayGo Trust, and upon PREPA 

ERS’ request for reimbursement for any payments or expenses, such documentation shall be presented 

to the Board. 

II. PAYGO TRUST BOARD OF TRUSTEES

2.1 Composition of the Board: 

A. Membership: The Board shall consist of three (3) trustees, to be appointed within three 

(3) months after the occurrence of the Effective Date. The Oversight Board shall

appoint one (1) trustee (the “FOMB Trustee”), the Commonwealth of Puerto Rico 

(“Commonwealth”) shall appoint one (1) trustee, and PREPA shall appoint one (1) 

trustee; provided, however, that if any of such persons is not timely appointed or 

designated, such delay shall not delay or impair the operation of the Board, which shall 

commence its activities on the first business day of the first calendar week following 

expiration of the three (3)-month period following the Effective Date on which there 

are at least two (2) appointed Board trustees (the “Commencement Date”). As each 

trustee is appointed, the appointing entity shall certify to the Oversight Board, the 

Commonwealth and PREPA, as applicable, such appointment and the trustee’s specific 

qualifications that satisfy the criteria in Section 2.1(C). 

Upon termination of the Oversight Board, (i) the FOMB Trustee shall be entitled to 

serve the remainder of his or her term, and (ii) the Commonwealth shall be entitled to

appoint a member to the Board to fill the seat previously occupied by the FOMB

Trustee. The Commonwealth thereafter shall have the right prospectively to appoint 

any successor to such jointly appointed member of the Board.

A person may not serve more than two (2) terms as a member of the Board, regardless 

of whether such person has served consecutive terms. 

B. Inaugural Meeting. On or as soon as practicable after the earlier of the Commencement 

Date and the appointment of all trustees to the Board, the Board shall call and convene 

an inaugural meeting of the Board (the “Inaugural Meeting”). For purposes of the

Inaugural Meeting, the FOMB Trustee shall serve as the interim Chairman and the shall 

appoint another trustee of the Board to serve as interim Secretary. If the FOMB Trustee

has not yet been appointed, the Commonwealth shall designate one appointee as 

interim Chairman. At the Inaugural Meeting, the Oversight Board shall deliver custody 

of all documents and information regarding or related to the Oversight Board’s

activities on behalf of the PREPA PayGo Trust and the Board, including all bank 

account information for the administrative and operating accounts opened by the 

Oversight Board for the PayGo Trust in the name of the Board. By convening the 

Inaugural Meeting, the Oversight Board’s duties and authority under Section 4.7 shall 

automatically cease. At or immediately after the Inaugural Meeting, the Oversight 

Board shall take all other necessary and reasonable steps to transfer to the Board control 

of all bank accounts and any other assets of the PayGo Trust, as well as any documents 

and information of or belonging to the PayGo Trust or the Board.

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C. Eligibility and Qualifications: No trustee shall be appointed to the Board who has a 

known or reasonably perceived conflict of interest. Except for the Commonwealth’s

appointee, trustees of the Board cannot concurrently be active employees of Puerto 

Rico or any of its agencies, instrumentalities or public corporations. In addition, no 

trustee can be a former member of the board of PREPA ERS. Each trustee of the Board 

shall have proven leadership skills and have expert knowledge or extensive experience 

with respect to either: 

i. Economics, finance or institutional investments, as evidenced by one or more 

of the following:

(a) An earned masters or Ph.D. in economics or finance from a 

doctorate-granting U.S.-accredited institution;

(b) The Chartered Financial Analyst credential of the CFA Institute; 

or

(c) A minimum of fifteen (15) years of professional experience as a 

certified public accountant with audit expertise of financial 

management, pension or insurance clients; 

or

ii. Asset management expertise, as evidenced by one or both of the following:

(a) At least fifteen (15) years of asset management industry 

experience; and

(b) Technical competencies, including investment strategy, 

investment management across different asset classes, 

investment risk management, third party management of external 

asset managers and custodians, corporate governance, financial 

management, strategic leadership, communication and 

stakeholder management.

D. Term: Trustees of the Board shall serve for a term of four (4) years, beginning on 

January 1 of the relevant year; provided, however, that if the term of the initial Board 

begins on a date other than January 1, the term of service for the members of that initial 

Board shall consist of that partial first year plus three (3) additional calendar years; 

provided further, however, that a trustee of the Board can be reappointed at the 

expiration of his or her term. If a trustee of the Board does not complete his or her 

term for any reason, the entity or person that appointed such trustee pursuant to Section 

2.1(A) (subject to the last sentence of Section 2.1(A)(i)) shall appoint a replacement 

trustee who is eligible to serve in such position. In each case, the replacement trustee 

shall serve for the remainder of the four-year term.

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III. BOARD GOVERNANCE

3.1 By-laws: Within [●] months of the Inaugural Meeting, the Board shall by an affirmative vote 

of at least two (2) trustees adopt a set of by-laws to govern the Board’s conduct, which shall be 

consistent with the Plan and these Guidelines. Such by-laws shall include appropriate provisions 

regarding fiduciary duties consistent with fiduciary standards set forth in the Internal Revenue Code, 

obligations of the Board, meetings of the Board, removal and replacement of Board trustees, and 

voting on matters by Board trustees. In particular, without otherwise limiting the Board’s ability to 

develop appropriate by-laws, the Board’s by-laws shall provide that each Board trustee shall have one 

vote, subject to any disqualifying conflict of interest, with respect to any matter being voted upon. In 

accordance with Section 2.1(A), the Board may form subcommittees as it deems necessary. 

3.2 Code of Conduct and Ethics Policy: The Board’s by-laws shall include a Code of Conduct 

and Ethics Policy setting forth the Board’s obligation to act ethically in connection with the use of 

public funds and in the interest of PREPA ERS and the Participants, and affirming the Board’s 

commitment to do so. The Code of Conduct and Ethics Policy shall include provisions regarding 

confidentiality, conflicts of interests and self-dealing, as well as a gift policy and an enforcement 

policy consistent with relevant provisions of Puerto Rico law and as required by the Plan and the 

Confirmation Order. The Code of Conduct and Ethics Policy shall be posted on any website

maintained by the Board.

3.3 Compensation: Board members shall be paid an annual compensation in an amount not to 

exceed $25,000.00 (subject to adjustment for inflation), paid in four equal installments at the end of 

each calendar quarter; provided, however, that compensation may be adjusted by resolution of any 

subcommittee of the Board formed for the purposes of evaluating such compensation. Compensation 

for the period from the date of the Inaugural Meeting to the end of the first calendar quarter thereafter 

shall be prorated and paid on the first business day following such calendar quarter or as soon as 

practicable. The Board trustees also shall be reimbursed for their reasonable expenses incurred in 

attending meetings and otherwise carrying out their responsibilities as Board trustees. 

Notwithstanding the foregoing, any Board trustee employed by the Government of Puerto Rico or any 

public corporation or instrumentality shall not receive compensation for his or her service on the Board 

while so employed, but may receive reimbursement of expenses as provided in this Section 3.3.

3.4 Budget: The Board shall, in its sole discretion, prepare a budget of anticipated expenses to be 

incurred in the forthcoming fiscal year for ordinary and recurring activities of the Board and for other 

non-recurring activities reasonably foreseeable to occur in the forthcoming fiscal year. The initial 

budget shall be approved by the Oversight Board.

3.5 Annual Report: Following the end of each fiscal year, the Board, with the assistance of its 

retained professionals as described in Sections 4.1 and 4.4, promptly shall prepare and issue a public 

report, as of the end of the fiscal year, regarding the composition of the PayGo Trust assets and 

investments over the course of the reporting period and the performance of such investments by asset 

class and by each investment manager during the calendar year just ended and such other information 

that the Board determines is relevant. Each such annual report shall be posted on any website 

maintained by the Board. 

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IV. POWERS OF THE BOARD

4.1 Management of PayGo Trust: The Board shall be responsible for the management of the 

PayGo Trust, including, but not limited to, employing staff as needed at its discretion for the PayGo

Trust, collection of Cash payments from PREPA sufficient for the PREPA PayGo Trust to reimburse 

PREPA ERS for retirement benefits paid and administrative expenses incurred in the prior Fiscal Year 

ending June 30 in accordance with Article XXVI of the Plan, collection of debt service payments on 

any New Bonds distributed by PREPA to the PREPA PayGo Trust under the Plan, selecting a custodian 

to hold the assets of the PayGo Trust, directing (in consultation with the investment advisor(s) selected 

pursuant to this Section 4.1) the investment of the assets of the PayGo Trust, and managing the 

administration of the PayGo Trust. The Board also shall have responsibilities with respect to 

reviewing the ongoing operations of PREPA ERS, including review of benefit payments, reviewing 

and approving contribution requests and, if needed, advance requests, administrative expenses, and

confirmation of compliance with the Plan, including the freeze of benefit accruals as of the Effective 

Date and the elimination of cost of living adjustments. The Board will have the authority to take any 

and all steps it determines are necessary or desirable in its discretion to maximize the tax efficiency 

of the assets and investments of the PREPA PayGo Trust.

A. Selection of Investment Advisor(s): The Board shall retain one or more qualified 

investment advisors through a competitive and public process. The Board shall set 

minimum qualification requirements, including the following requirements: (i) the 

investment advisor must be registered as an investment advisor under the Investment 

Advisers Act of 1940; (ii) the investment advisor and each of its key professionals must 

not have material conflicts of interest with the Board; (iii) the investment advisor must 

agree to serve as a fiduciary; and (iv) the investment advisor must have a verifiable and 

successful operating history with at least three (3) pension fund clients each of which 

has a minimum of $5 billion in assets under management. As soon as reasonably 

practicable following the Effective Date of the Plan, the Board shall conduct a public 

Request for Proposal (“RFP”) process in order to search for such investment 

advisor(s). The goal of the RFP shall be to solicit and evaluate proposals in a fair and 

objective manner, and the RFP process shall be documented and public. The Board 

may retain a qualified consultant to manage the RFP process. As it determines to be 

necessary or prudent, the Board may renew the RFP process from time to time to select 

one or more additional or replacement investment advisor(s); provided, however that:

(x) while the Oversight Board is in existence with respect to PREPA, any engagement 

agreements with any such investment advisor(s) or any consultant engaged to assist 

with the RFP process shall be subject to review and approval by the Oversight Board 

pursuant to its Contract Review Policy as in effect from time to time; and (y) all 

contracts executed by the Board on behalf of the Board and/or the PayGo Trust shall 

be made public and shall be registered with the Comptroller Office pursuant to 

applicable Puerto Rico laws. 

B. Roles & Responsibilities: The investment advisor(s) shall have the following roles and 

responsibilities, and the terms of such relationship shall be set forth in a written 

agreement in which the advisor shall acknowledge its fiduciary status:

i. Advising the Board on issues concerning the selection of investments for the 

PayGo Trust; 

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ii. Assisting in the development and maintenance, and periodic review and 

modification as appropriate, of an investment policy statement designed to set 

forth the goals, objectives and risk tolerances of the PayGo Trust’s investment 

program (the “Investment Policy Statement”), as described below;

iii. Advising in the development of the PayGo Trust’s asset allocation strategy; 

iv. Providing investment advice to the Board with respect to the PayGo Trust; 

v. Assisting in the analysis, selection, monitoring and replacement of investments 

and investment managers;

vi. Assisting the Board with the review of the performance and risk of the selected 

investments, on at least a semi-annual basis, in comparison to their stated 

objectives and their related performance and pricing as compared to their peers 

and benchmarks;

vii. Bringing information to the Board, on an ad hoc basis as appropriate, that the 

investment advisor feels may be relevant to the Board’s assessment of a given 

investment, asset class or strategy; and

viii. Provide Outsourced Chief Investment Officer services, if so engaged by the 

Board. 

C. Development of Investment Policy Statement: The Board, together with expert 

assistance from its investment advisor(s), shall develop the Investment Policy 

Statement within [●] months of the Inaugural Meeting. The Investment Policy 

Statement shall be designed to provide meaningful direction for the Board, the 

investment advisor(s) and the investment managers in the management of the PayGo

Trust. 

D. Investment Objective: The Board, the investment advisor(s) and the investment 

managers shall perform their duties for the exclusive benefit of and in the best 

economic interest of the PREPA ERS and the Participants. The objective of the PayGo

Trust’s investment program is to generate returns within an appropriately riskconstrained framework, net of reasonable investment fees and expenses, in order to 

serve the intended purposes of the PayGo Trust under the Plan of Adjustment. This 

will be accomplished through a carefully planned and executed long-term investment 

program that allocates and manages the assets of the PayGo Trust. 

E. Prudent Management of the PayGo Trust: This Section 4.1 is meant to serve as a 

general framework for the prudent management of the PREPA PayGo Trust. Changing 

conditions, economic trends or other factors may necessitate modification of this 

framework. The Investment Policy Statement at all times shall reflect the current 

objectives and guidelines for the Board’s management of the PREPA PayGo Trust, and 

the Investment Policy Statement may be modified by written approval of the Board. 

The Board shall promptly provide a copy of such modified Investment Policy 

Statement to the Act 106 Board, and shall post that documentation on the Board’s

website.

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F. Tax Matters: The funds held in the PREPA PayGo Trust shall be exempt from the 

payment of any taxes to Puerto Rico and its municipalities and instrumentalities. The 

Board, and the Oversight Board in its interim role as applicable, shall be empowered 

to seek favorable tax status for U.S. and foreign investments. The PREPA PayGo 

Trust’s income is excludable from gross income under Section 115 of the Internal 

Revenue Code (IRC) because the PREPA PayGo Trust’s income accrues to the benefit 

of a public corporation within the government of a possession of the United States.

4.2 Development of PREPA ERS Reimbursement Policy: The Board, together with expert 

assistance from its legal counsel, shall develop the PREPA ERS Reimbursement Policy Statement 

within [●] months of the Inaugural Meeting. The PREPA ERS Reimbursement Policy Statement shall 

(i) be designed to provide meaningful direction for the Board and PREPA ERS in managing 

reimbursement requests, (ii) establish the mechanisms, timing and approval process for 

reimbursement requests, and (iii) administrative review of operations, including the calculation of the 

freeze on benefit payments and elimination of cost of living adjustments in accordance with the Plan. 

Reimbursements from the PayGo Trust to PREPA ERS shall commence as soon as practicable after

the conclusion of Fiscal Year 2024 and continue thereafter either annually or otherwise as determined 

by the Board in its discretion. Notwithstanding the foregoing, the administration of any pension 

benefit payments shall be made by PREPA ERS. 

4.3 Requests for Documents and Information: The Board shall keep complete and accurate 

records of all transactions affecting the PayGo Trust. The Board shall have the right to request and 

receive any information deemed necessary by the Board in order to carry out its responsibilities as set 

forth in these Guidelines and the Deed of Trust, including documentation requested from PREPA ERS 

relating to the calculation and payment of pensions to Participants and from PREPA. To the extent 

that there is a disruption in collections for the PayGo Trust due to circumstances beyond PREPA’s 

control, such as a hurricane or other natural disaster, PREPA shall update the Board each month 

regarding the anticipated and actual impact of such disruption, until collections return to previous 

levels.

4.4 Employment of Professionals: In addition to the investment professionals retained pursuant 

to Section 4.1, the Board may engage other professionals and service providers necessary and 

desirable in the performance of its duties hereunder. The Board shall have the authority to enter into 

contracts and incur fees and expenses in connection with hiring such service providers. All such fees 

and expenses shall be paid from the PayGo Trust. 

4.5 Power to Sue and Jurisdiction of U.S. District Court: The Board has legal capacity and the 

power to bring any cause of action in the name of the Board and/or the PREPA PayGo Trust, as 

appropriate, against any appropriate party, regarding any matters in connection with the 

implementation of the PREPA PayGo Trust, including payments from PREPA that are inconsistent 

with the Plan or the Confirmation Order, and the performance of the Board’s duties pursuant to these 

Guidelines. The Board has legal capacity and power to bring any cause of action in the name of the

Board and/or the PREPA PayGo Trust, as appropriate, to resolve a dispute. The U.S. District Court 

for the District of Puerto Rico shall have original and exclusive jurisdiction over any such causes of 

action of the PREPA PayGo Trust, as well as any causes of action against the Board or PREPA PayGo

Trust. 

4.6 Independence: For the avoidance of doubt, neither the Board nor the PREPA PayGo Trust 

shall be an instrumentality of PREPA, nor are they responsible for the obligations of PREPA under the 

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Plan. The Board from time to time may adopt such rules and regulations as may be necessary or 

desirable for its proper and efficient administration. All reasonable and proper expenses incurred in 

the administration of the Board’s responsibilities pursuant to an approved budget will be paid out of 

the assets of the PREPA PayGo Trust. The property, assets, title and rights of the PREPA PayGo Trust 

together constitute a fully autonomous separate estate from PREPA and the PREPA ERS, and 

administration of the estate is limited to the specific purposes established by the Plan and these 

Guidelines. Creditors of PREPA or PREPA ERS shall have no recourse against the PREPA PayGo 

Trust or any of its assets. The assets of the PREPA PayGo Trust shall not be subject to attachment or 

any other legal remedy by or on behalf of creditors of PREPA or PREPA ERS. Without limiting the 

generality of the foregoing, the PREPA PayGo Trust shall have the protections set forth in applicable 

provisions of Puerto Rico law. Further, for the avoidance of doubt, notwithstanding the foregoing, the 

Board is not to be incorporated and is not to be deemed to have legal personality separate from the 

PREPA PayGo Trust.

4.7 Interim Role of the Oversight Board: The period from the Effective Date to the date of 

commencement of the terms of the trustees of the Board appointed pursuant to Section 2.1(A) shall 

be referred to herein as the “Transitional Period”. During the Transitional Period, the Oversight 

Board shall perform certain of the start-up functions of the Board for the purpose of performing initial 

tasks to establish and commence administration of the PayGo Trust as set forth below.

A. Upon the execution of the Deed of Trust, the Oversight Board shall have the authority 

to establish an interest-bearing checking account with a federally insured bank in the 

name of the Board, to serve as an administrative and operating account and to receive 

the initial funding under Section 1.4(B). For the avoidance of doubt, the Oversight 

Board shall not invest the funds in the administrative and operating accounts or 

otherwise manage them other than as described herein. In accordance with Section 

2.1(B), the Oversight Board shall cease any bank authorization it has upon the 

convening of the Inaugural Meeting and deliver any records and documents in its 

possession or control in connection with the PayGo Trust to the Board. 

B. The Oversight Board is authorized to take any reasonable actions to support the timely

and effective operations of the Board, which may include any of the following:

i. commence and engage in RFP and Request for Information (“RFI”) process to 

select an investment advisor, a third party asset servicer, asset managers and 

other essential professional advisors;

ii. oversee the collection of principal and interest from any New Bonds distributed

to the PREPA PayGo Trust under the Plan;

iii. commence and engage legal guidance on matters critical to the operational 

enactment of the PayGo Trust; and

iv. undertake any other reasonable measures or initiatives that a prudent board of 

trustees would undertake to enable governance, operational and organizational 

readiness of the PayGo Trust and the Board.

C. The actions of the Oversight Board described in this Section 4.7 are in furtherance of 

the implementation of the Plan of Adjustment and carrying out its responsibilities in 

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accordance with PROMESA. Pursuant to PROMESA section 105, the Oversight 

Board, its members and its employees shall not be liable for any obligation of or claim 

against the Oversight Board or its members or employees or the territorial government 

resulting from actions taken with respect to these Guidelines.

V. INDEMNIFICATION & INSURANCE

5.1 Indemnification: Except for acts determined by a final order of the U.S. District Court for 

the District of Puerto Rico or an appellate court to constitute criminal acts, willful misconduct, fraud,

or a material violation of the Code of Conduct and Ethics Policy, and to the extent not covered by 

insurance as set forth in Section 5.2, the trustees of the Board and their employees shall be indemnified 

by the PREPA PayGo Trust against all expenses (including costs and attorneys’ fees) actually and 

necessarily incurred or payable by the member or the employee in connection with the defense of any 

action, suit or proceeding to which the member or the employee may be made a party by reason of the 

member or the employee being or having been so designated as a member or employee of the Board,

respectively, or by reason of any action or omission or alleged action or omission by the member or 

the employee in such capacity. 

5.2 Insurance: The Board shall each maintain appropriate amounts of insurance that the Board 

reasonably determines is necessary. Such insurance shall be provided by a nationally recognized 

insurance carrier. Such insurance policies shall provide for both (i) non-indemnifiable coverage 

(commonly referred to as “Side A” coverage) pursuant to which the insurer will pay to, or on behalf 

of, the insured person the applicable amount with respect to any covered loss, except to the extent the 

PREPA PayGo Trust has paid such amount to, or on behalf of, the insured person as indemnification 

or as an advance, and (ii) indemnification coverage (commonly referred to as “Side B” coverage) 

pursuant to which the insurer will pay to, or on behalf of, the PREPA PayGo Trust the applicable 

amount with respect to any covered loss arising from claims first made against an insured person, to 

the extent that the PREPA PayGo Trust has paid such amount to, or on behalf of, the insured person 

as indemnification or advancement. All reasonable insurance costs shall be paid from the PREPA

PayGo Trust. 

VI. OTHER PROVISIONS

6.1 Amendment of Guidelines: Amendments to these Guidelines and/or the Deed of Trust may

be made with the prior written consent of the Oversight Board, PREPA, and the Commonwealth.

6.2 Termination of PREPA PayGo Trust: The PREPA PayGo Trust shall terminate at such time 

it determines the remaining assets of PREPA ERS, combined with the remaining assets of the PREPA 

PayGo Trust upon transfer to the PREPA ERS, are sufficient to pay all remaining annual retirement 

benefits to the Participants. Upon termination of the PayGo Trust, all its assets, property and causes 

of action shall be transferred to the PREPA ERS. 

End of Document

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