Bill > H4300

This bill authorizes the Plymouth County Contributory Retirement System, which manages retirement benefits for county employees, to issue pension funding bonds or notes to cover any unfunded pension liability, meaning the shortfall in funds needed to pay promised retirement benefits. The system can issue these bonds for up to 20 years, with the total amount determined by the retirement board and approved by the Plymouth County Retirement Advisory Board, based on a report from an independent consulting firm. The bill outlines procedures for the sale and terms of these bonds, including potential credit enhancements and trust agreements with banks. Proceeds from the bonds must be used to reduce the unfunded pension liability and can be invested according to state law. Before issuing bonds, the retirement system must submit a plan detailing the bond issuance, funding amounts, and expected savings to the board and the Secretary of Administration and Finance for approval. Each governmental unit participating in the retirement system will be responsible for its proportional share of the debt service on these bonds, and this cost will be factored into state aid calculations for schools. Governmental units have a 60-day window after the bill's passage to opt out of participating in the bond issuance, though they will still be liable for any existing debts owed to the retirement system.