EXHIBIT N

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Exhibit N Page 1 of 7
CERTIFIED TRANSLATION

I, Juan E. Segarra, USCCI #06-067/translator, certify that the foregoing is a true and accurate

translation, to the best of my abilities, of the document in Spanish which I have seen.

Government of Puerto Rico

DEPARTMENT OF THE TREASURY

Central Government Accounting Area

Circular Letter Fiscal Year 2016 - 17

No. 1300-46-17 June 27, 2017

To the Secretaries of the Government, 

Legislative Branch, Judicial Branch, 

Agency Heads, Executive Directors, 

Presidents of Public Corporations and 

Mayors of the Government of Puerto Rico

Matter: Implementation of PayGo Retirement 

System

Dear sirs:

On October 30, 2016, the Financial Oversight and Management Board for Puerto Rico 

designated the Government of Puerto Rico, the Government Employees Retirement System, 

the Judiciary Retirement System, the Teachers Retirement System, (jointly referred to as the 

“Retirement Systems” or the “Systems”), the University of Puerto Rico, and 21 additional public 

corporations of Puerto Rico, as “covered entities,” subject to fiscal oversight in accordance with 

the federal Puerto Rico Oversight, Management, and Economic Stability Act, commonly known 

as PROMESA.

The liquid assets of the Retirement Systems shall be exhausted during the first months of the 

next fiscal year. Due to the projected lack of liquidity of the Systems, the Government shall 

protect the payments to pensioners. Starting from July 1, 2017, the Government shall adopt the 

“PayGo” system. Under this new system, the Government shall be responsible for payment of 

the deficiency of the Systems to provide pensioner benefits.

In addition, the Department of the Treasury shall charge Public Corporations, Municipalities, the 

Executive Branch, the Legislative Brand and the Judicial Branch a monthly charge to cover 

pensioner benefits. The Systems shall determine and administer the amount of the payment per 

pensioner to be paid by each Public Corporation and Municipality. Said amount is what shall be 

referred to as the “PayGo Charge”. This has the purpose of avoiding affecting the payment to 

pensioners. It is indispensable for the Department of the Treasury to have the cash resources 

that are necessary to make said payments.

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Exhibit N Page 2 of 7
CERTIFIED TRANSLATION

I, Juan E. Segarra, USCCI #06-067/translator, certify that the foregoing is a true and accurate

translation, to the best of my abilities, of the document in Spanish which I have seen.

CC 1300-46-17

June 27, 2017

Page 2

It shall be the responsibility of said entities to send the “PayGo Charge,” in its entirety, to the 

Department of the Treasury to the following Banco Popular de Puerto Rico accounts:

SYSTEM BANK ACCOUNT ROUTING AND TRANSIT

Retirement System 030-076943 021502011

Teachers Retirement System 030-077001 021502011

Judiciary Retirement System 030-076994 021502011

To the extent that, during the first months of fiscal year 2017-18, the liquid funds of the Systems 

are exhausted, the “PayGo Charge” of each entity is expected to go up. In addition, starting 

from July 1, 2017, employer contributions, special law contributions, and Additional Uniform 

Contribution (Law 32-2013), shall be eliminated and substituted by the “Pay Go Charge”.

Currently, a Retirement Systems Reform is being worked on, under which active participants 

shall deposit their individual contributions in a New Defined Contribution Plan administered by a 

private entity. In order to preserve said contributions separately, starting from July 1, 2017, all 

individual contributions shall be sent to the following Banco Popular de Puerto Rico

accounts:

SYSTEM BANK ACCOUNT ROUTING AND TRANSIT

Retirement System 030-076935 021502011

Teachers Retirement System 030-076986 021502011

Judiciary Retirement System 030-076978 021502011

The “PayGo Charge” shall be billed on a monthly basis and payment of the same must be sent 

on or before the fifteenth (15th) day of the month following the date of the bill. The withholding in 

respect of individual contribution must also be sent to the separate account corresponding to the 

New Defined Contribution Plan.

Furthermore, it is established that if a Public Corporation, Municipality, or any entity that has 

Retirement System participants, fails to deliver to its corresponding System, within the following 

thirty (30) days from the withholding, the “PayGo Charge” funds or the individual contributions 

withheld from its employees participating in the corresponding System, the Department of the 

Treasury shall withhold from any available remittance the amounts not paid by the government 

entity that fails to comply with the provisions of this Circular Letter. In the case of Municipalities, 

the Municipal Income and Collection Center shall be required to send the owed amounts to the 

Department of the Treasury.

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Exhibit N Page 3 of 7
CERTIFIED TRANSLATION

I, Juan E. Segarra, USCCI #06-067/translator, certify that the foregoing is a true and accurate

translation, to the best of my abilities, of the document in Spanish which I have seen.

CC 1300-46-17

June 27, 2017

Page 3

Deductions related to personal, cultural and mortgage loans with the retirement systems

shall be sent to the following Banco Popular de Puerto Rico accounts:

SYSTEM BANK ACCOUNT ROUTING AND TRANSIT

Retirement System 030-077044 021502011

Teachers Retirement System 030-077036 021502011

Judiciary Retirement System 030-077052 021502011

Deductions related to disability insurance shall be deposited in Banco Popular de Puerto 

Rico account number 030-077060 (routing and transit 021502011).

The purpose of this new system is to protect the welfare of pensioners and public servants, 

while fully complying with the Fiscal Plan certified by the Fiscal Oversight Board.

The text of this Circular Letter is available on our webpage at the following address: 

www.hacienda.pr.gov/sobre-hacienda/publicaciones/contabilidad-central/cartascirculares-de-contabilidad-central.

It shall be the responsibility of the agencies to deliver this Circular Letter to the personnel in 

charge of making payment of the contributions herein established.

Cordially,

[signature] [signature]

Mr. Raúl Maldonado Gautier, Esq., CPA Mr. Luis M. Collazo, Esq.

Secretary of the Treasury Administrator

Administration of the Retirement Systems of 

Government Employees and the Judiciary

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