CT HB07296

Municipalities with unfunded accrued liabilities to the Municipal Employees' Retirement System as of July 1, 2017 may issue municipal employees' retirement system pension funding bonds to fund all or part of those liabilities.

Municipalities must notify the Secretary of the Office of Policy and Management, State Treasurer, and Retirement Commission at least 30 days before issuing such bonds, providing documentation of authorization, liability amounts, and a comparison of bond funding versus annual payment methods.

Municipal employees' retirement system pension funding bonds must be general obligations maturing or with sinking fund payments due within 18 months to 30 years from issuance, with proceeds paid to the Retirement Commission within 30 days of issuance.

Municipalities may issue refunding bonds to refinance prior pension funding bonds, provided the weighted average maturity of refunding bonds does not exceed that of the bonds being refinanced.

The Secretary of the Office of Policy and Management may adopt regulations to establish guidelines for municipal compliance with these pension funding bond provisions.