AT THE US Navy base at Guantanamo this month, the Pentagon marked the retirement of two elderly workers with typical military pageantry. Schoolchildren did a folkloric dance. There were speeches, a cake and presentation of certificates by the base commander to the would-be pensioners.
This was not a typical US Navy retirement party. Harry Henry, 82, and Luis La Rosa, 79, are the last two daily commuters from their homes in Cuba to the US-controlled territory. They got their jobs at Guantanamo as teenagers and, as long-serving US government employees, are entitled to Defence Department pensions.
But their retirement leaves the navy with no way to pay the pensions they and other Cuban workers have earned because of the five-decade-old US embargo on trade with Cuba.
"Right now there is no established plan to pay these pensions - because of the complication of US law," navy Lieutenant-Commander Christopher Servello said in a statement. "Base and Department of State officials are working to find a permanent solution."
The navy so far won't say how many retired Guantanamo labourers are still receiving pensions, or provide a dollar figure.
Thousands of Cubans commuted to the base from neighbouring towns in south-east Cuba as day labourers - welders, machinists and groundskeepers - before Fidel Castro swept to power in 1959. As tensions built, the base became more and more isolated, producing its own water and electricity.
The US imposed a series of economic sanctions that culminated in the 1962 trade embargo. Cuban workers already employed at Guantanamo were able to keep coming but no one new would be hired.
By 1999, the commuter labour force had dwindled to 18 men walking through the hills to Guantanamo, with some entrusted to carry funds to the pensioners who lived in Cuba.
By 2002, about 100 retirees were receiving US federal pensions, and navy officials sought an initiative to do a wire transfer without violating the embargo. "We saw this coming for some time with the retirement of the last Cuban commuter," one naval officer said, "but have yet to settle on a solution."
Mr Henry and Mr La Rosa were the last of the legacy labourers to serve as bagmen of sorts, twice a month carrying pensions to their colleagues on the Cuban side of the US Marines' 28-kilometre fence line. Mr La Rosa, who retires as a motor pool worker, began working at Guantanamo as an 18-year-old welder. Mr Henry, hired at 17, worked at the base's office-supply depot.
A previous base commander suggested the marines who stand guard on the frontier could be asked to hand cash through the fence to Cuban soldiers. The navy had no comment last week on whether that was a potential solution.
The base itself created a video tribute to the men, without mentioning the retirement pay problem.
"On December 31, these two gentlemen's years of sacrifice and dedication will draw to a close," said a US sailor, "as they pass through the north-east gate for the final time, marking the end of an era."
The author of 2011's Guantanamo: An American History, Jonathan Hansen, said on Friday that this latest episode was "emblematic of the complications of America's long history at the base", which cannot escape US policy towards Cuba.
"Every cute story that comes out of that place has another dark side to it," Hansen said. "So it doesn't surprise me, actually, that they're not going to get these pensions."
Frequently Asked Questions about this Article…
What is the issue with Guantanamo pensions for retired Cuban workers?
The Pentagon recently retired the last two daily Cuban commuters from the US Naval base at Guantanamo, leaving the navy without a clear way to pay pensions owed to Cuban retirees because the five-decade-old US trade embargo on Cuba complicates transfers and there is currently no established plan to pay them.
Why does the US embargo on Cuba affect payment of Guantanamo pensions?
The 1962 US trade embargo restricts financial transactions with Cuba, and navy officials say that legal complications from US law tied to the embargo prevent an easy mechanism — such as wire transfers — to deliver Defence Department pensions to Cuban retirees.
Who were the last Cuban commuter workers at Guantanamo and what were their roles?
The last two legacy commuters were Harry Henry, 82, who worked at the base’s office-supply depot and was hired at 17, and Luis La Rosa, 79, a motor-pool worker who began as an 18‑year‑old welder; both had long service as US government employees and are entitled to Defence Department pensions.
How have Guantanamo pensions been delivered to Cuban retirees in the past?
Historically, Cuban commuters sometimes carried funds across the base boundary to pensioners in Cuba, and by 1999 a small group of men were entrusted to carry pensions. Navy officials also explored wire transfers around 2002 but were constrained by embargo-related legal issues.
How many Cuban retirees received US federal pensions from Guantanamo historically?
Thousands of Cuban day laborers once commuted to the base before 1959; by 1999 the commuter force had dwindled, and by 2002 about 100 retirees were reported as receiving US federal pensions. The navy has not disclosed current totals or dollar figures.
Are there any official plans to resolve the pension-payment problem for Guantanamo retirees?
Navy Lieutenant-Commander Christopher Servello said there is currently no established plan; base and Department of State officials are working to find a permanent solution, but no definitive approach has been announced.
What ad‑hoc ideas have been suggested to get pensions to Cuban retirees?
A previous base commander suggested that marines on the frontline might hand cash through the fence to Cuban soldiers, and historically trusted commuters carried funds across the line — but the navy had no official comment on whether such options would be used as a solution.
What broader lessons does the Guantanamo pension story illustrate for investors watching geopolitical risk?
This episode highlights how long‑running geopolitical policies such as sanctions and embargoes can create unexpected operational and payment risks for government obligations; everyday investors tracking sovereign or geopolitical risk may see it as an example of how policy choices can complicate even routine financial commitments.
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