2015 House Bill 4158

Let less credit-worthy municipalities incur “pension obligation bond” debt

Introduced in the House

Feb. 5, 2015

Introduced by Rep. Ben Glardon (R-85)

To revise a 2012 law that allows municipalities to borrow money to cover unfunded pension liabilities if this is done as part of a plan to close a traditional “defined benefit” pension system to new employees. The bill would allow local governments with significantly lower credit-worthiness ratings to incur this additional debt (“A“ rather than “AA,” which is three grades lower).

Referred to the Committee on Financial Liability Reform