Bill > S1463

This bill authorizes Plymouth County to issue pension obligation bonds (POBs) to fund its unfunded pension liability to the Plymouth County Contributory Retirement System. The bill requires that any bond issuance must first receive a two-thirds vote from the county's advisory board on expenditures and be recommended by county commissioners. Before issuing the bonds, the county must submit a detailed plan to the executive office for administration and finance for approval, and the secretary must review and approve both the plan and the bond issuance. The total principal amount of the bonds cannot exceed the amount needed to eliminate the county's unfunded pension liability, as determined by a nationally recognized independent consulting firm and approved by the public employee retirement administration commission. The bonds must have a maturity term of no more than 10 years, and their principal and interest payments should be as nearly equal as possible, with potential flexibility for more rapid principal amortization as approved by the secretary for administration and finance. The bill aims to provide Plymouth County with a structured method to address its pension funding shortfall while ensuring fiscal oversight and transparency. The legislation will take effect immediately upon passage.

Budget and Finance, Government Affairs

https://malegislature.gov/Bills/194/S1463