CT HB05480

Secretary of the Office of Policy and Management shall establish a pilot program allowing one municipality to issue postemployment benefit plan deficit funding bonds one time only.

Eligible municipalities must have a population of at least 115,000, be incorporated by special act, and have a mayor and city council form of government; municipal legislative body must approve the application.

Selected municipality must notify the Secretary with actuarial valuations, financial plans, investment strategies, and proof of municipal authorization before issuing bonds to fund unfunded past benefit obligations.

Municipality must appropriate funds annually sufficient to meet the actuarially required contribution to the postemployment health and life benefit plan for as long as the bonds are outstanding, with automatic appropriation if the municipality fails to do so.

Secretary and State Treasurer have 30 days to issue written final review of municipality's materials; municipality cannot issue bonds prior to receipt of final review or more than six months after receipt; Secretary must report to General Assembly by December 1, 2011.