2013 House Bill 4468

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

Introduced in the House

March 19, 2013

Introduced by Rep. Stacy Erwin Oakes (D-95)

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”).

Referred to the Committee on Financial Liability Reform