In short
The Police Retirement Trust, created by Act 40-2020, distributes 80% of its assets each year — funded mainly by slot-machine revenue — among eligible retired members of the Puerto Rico Police, calibrated so each payment approaches 50% of the participant's average compensation, including what they receive from Social Security and other retirement systems. Before Act 147-2026, the formula did not guarantee that payment would not shrink because of the Social Security income the retiree also receives. This Act closes that gap: it amends the formula to state expressly that the individual compensation remitted annually to Eligible Retired Members will not be discounted or adjusted because of Social Security income or payments, in line with the federal Social Security Fairness Act of 2023, which eliminated the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) that previously reduced Social Security for public employees with a pension from work not covered by that system.
What is it?
It is the rule protecting the Police Retirement Trust's annual payment from being reduced because the retiree also collects Social Security. Before, the formula counted Social Security among the participant's income sources without guaranteeing it would not be discounted for that reason; now it expressly prohibits it.
Who can do it?
Eligible Retired Members of the Puerto Rico Police who receive the annual distribution from the Police Retirement Trust and who also receive federal Social Security income or payments.
Requirements
- Being an Eligible Retired Member of the Puerto Rico Police under Act 40-2020, entitled to the Police Retirement Trust's annual distribution.Verified against the official source
- Receiving federal Social Security income or payments, in addition to the Trust's distribution.Verified against the official source
Documents you need
Cost
Step by step
Step 1: Confirm the law protects your annual payment
Since Act 147-2026, subinciso 3 of inciso (b) of Section 3 of Act 40-2020 expressly states that the individual compensation remitted annually to Eligible Retired Members of the Police will not be discounted or adjusted because of Social Security income or payments.
Step 2: Understand where the payment comes from
The Trust is funded mainly by slot-machine revenue under Act 11-1993. The Government Retirement Board of Puerto Rico determines the annual distribution of 80% of the Trust's assets among Eligible Retired Members, calibrated to approach 50% of each participant's average compensation.
Step 3: If you were discounted for Social Security, that practice is no longer authorized
The law grounds this amendment directly in the federal Social Security Fairness Act of 2023, which eliminated the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). If your annual distribution has been reduced because of your Social Security income after this law took effect, the formula no longer allows it.
Where to do it
The annual distribution is administered by the Government Retirement Board of Puerto Rico, under Act 106-2017, with recommendations from the Police Retirement Board created by Act 40-2020. This law publishes no separate claims process.
How long it takes
What to do if something goes wrong
This law changes a formula, it does not create a procedure: there is no application to file to benefit from it, because it applies automatically to the calculation the Government Retirement Board of Puerto Rico makes each year. We did not read the full Act 40-2020, nor Act 106-2017, Act 447-1951, Act 305-1999 or Act 3-2013, the other retirement systems the formula references, so we do not describe how they interact beyond what this amendment's text says. We also did not read the federal Social Security Fairness Act of 2023 itself, only what this law says about it. PRFácil does not process Trust distributions or give legal or financial advice.
Common mistakes
- Thinking you need to apply for this benefit: the protection applies automatically to the annual distribution formula.
- Confusing the Police Retirement Trust with the regular retirement system under Act 447-1951 or the New Defined Contribution Plan of Act 106-2017: these are separate sources the formula takes into account together.
- Assuming this law increases the Trust payment: it does not increase it, it only stops it from being reduced because of Social Security.
Frequently asked questions
Can my Trust payment be discounted because I collect Social Security?
No. Since Act 147-2026, the individual compensation remitted annually to Eligible Retired Members will not be discounted or adjusted because of Social Security income or payments.
How does this relate to the Windfall Elimination Provision (WEP)?
WEP and the Government Pension Offset (GPO) were federal rules that reduced Social Security for public employees with a pension from work not covered by that system. The federal Social Security Fairness Act of 2023 eliminated them, and this law incorporates that same principle into the Puerto Rico Police Retirement Trust's formula.
Do I have to apply for this benefit?
No. It is a rule within the annual distribution formula, not a separate procedure. The Government Retirement Board of Puerto Rico applies it when calculating your payment.
Official sources
These are the government pages this guide is based on.
- Policía de Puerto Rico
Policía de PR
bvirtualogp.pr.gov
Last verified
August 26, 2026
MiPRFácil is an independent informational website and is not affiliated with, endorsed by, or operated by the Government of Puerto Rico or any government agency.
MiPRFácil does not submit applications on your behalf.
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