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Puerto Rico court strikes down new pension law
Puerto Rico court strikes down new pension law aimed at reviving economy
Associated Press
2014-04-12 09:01 AM

SAN JUAN, Puerto Rico (AP) -- Puerto Rico's Supreme Court says a law to change the teachers' retirement system is unconstitutional, dealing a blow to the island's governor as he tries to revive the economy.

Friday's decision was cheered by thousands of teachers in the U.S. territory who recently organized a two-day strike to protest the changes.

Gov. Alejandro Garcia Padilla said the decision is not firm or final and that the justice secretary will review it.

Garcia had said the changes were needed because the pension system has a $10 billion deficit and will run out of money by 2020 if nothing is done.

U.S. credit rating agencies that recently downgraded the island's debt to junk status had praised the government for approving several measures, including making changes to public pension systems.

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