PRASA faces legal action over denied early retirement benefits
Puerto Rico water utility workers allege due process violations and emotional distress under the Act 80 retirement program.
A group of employees from the Puerto Rico Aqueduct & Sewer Authority (PRASA) has filed a civil rights lawsuit in the U.S. District Court for the District of Puerto Rico, alleging violations of due process and emotional distress tied to the denial of early retirement benefits under Act 80.
The plaintiffs, who represent various roles within PRASA, claim the agency and its leadership, including Executive President Doriel Pagán-Crespo and former human resources Director Añez Medina-Resto,, conspired to block their eligibility for benefits under the incentivized early retirement program.
Act 80, enacted in 2020, allowed eligible government employees to retire early with 50% of their salary, a notable improvement over traditional retirement plans.
The plaintiffs claim they applied within the required timeframes and were initially deemed eligible. However, PRASA later classified their positions as “essential,” disqualifying them from participating.
The lawsuit states that PRASA “did not give plaintiffs a pre- or post-deprivation hearing to challenge said decision or to demonstrate that their positions were not essential to PRASA. The decision that PRASA was not to allow those of its employees to take early retirement was taken by the defendants and hence they are liable to the plaintiffs for their damages.”
Financial and emotional impact
The plaintiffs argue that these actions violated their constitutional rights to due process under the 5th and 14th amendments by denying them required hearings, resulting in significant financial losses.
For example, Ángel Ramos-Pabón, one of the plaintiffs, would have received $2,910.01 monthly under Act 80 but is now projected to receive only $767.52 monthly upon retiring at 65.
Beyond financial setbacks, the plaintiffs report severe emotional distress, including stress, anxiety and worsening health conditions like hypertension and diabetes. Many had planned caregiving responsibilities, relocations or other life changes based on early retirement, which were disrupted by PRASA’s actions.
The lawsuit accuses PRASA leadership of acting intentionally and in bad faith by arbitrarily denying benefits and failing to provide transparency or justification for the decisions.
The plaintiffs also allege that the utility’s leadership ignored rights created by agreements between the Financial Oversight and Management Board for Puerto Rico and the Puerto Rican government regarding Act 80.
The plaintiffs are seeking compensatory damages for emotional distress and financial losses, with individual claims for emotional damages starting at $1 million. They are also requesting punitive damages, interest and attorney’s fees.
