Puerto Rico is poised to adopt an overhaul of the teachers' pension system as the government defends the commonwealth's investment grade rating.

The Puerto Rico Senate on Monday night followed the House of Representatives in approving a reform plan that increases employee contributions and raises the retirement age for future teachers to 62 from 55. Gov. Alejandro García Padilla indicated Tuesday he would sign the bill.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.