Bill > H4509

This bill authorizes the town of Nantucket to issue pension obligation bonds (POBs) to address its unfunded pension liability within the Barnstable County retirement association. The bill allows Nantucket to borrow money to pay down its pension debt, with several key provisions: the bonds can be issued for up to 30 years and are exempt from standard municipal debt limits, the total amount borrowed cannot exceed the unfunded pension liability for Nantucket, Nantucket County, and the Nantucket Islands Land Bank, and the bonds must be approved by the secretary of administration and finance after submitting a detailed debt service plan. The bill also requires that the Barnstable County retirement association determine the exact amount of unfunded liability through an independent consulting firm, and that the bond proceeds must be used specifically to reduce this pension debt. Additionally, if the unfunded liability involves employees from Nantucket County or the Nantucket Islands Land Bank, those entities must reimburse the town proportionally for the annual debt service. The bill further stipulates that the portion of debt service related to school personnel can be included in net school spending calculations, and the act will take effect immediately upon passage.

Budget and Finance, Labor and Employment

https://malegislature.gov/Bills/194/H4509