HB2441 Summary

• Authorizes issuance of $105,620,000,000 in State Serial Long Term Pension Obligation Bonds, increasing total authorized bonds from $57,717,925,743 to $163,337,925,743.

• Creates the State Serial Long Term Pension Obligation Bond Fund and requires bond proceeds be distributed to state pension systems on a pro-rated basis to bring unfunded liabilities to 90% funding level.

• Requires each retirement system under Illinois Pension Code Articles 14, 15, and 16 to establish a designated investment fund for 36% of bond proceeds to manage interest arbitrage and debt service contributions.

• Permits State Serial Long Term Pension Obligation Bonds to have terms up to 30 years and allows flexibility in sale methods (negotiated or public bid) similar to other bond types.

• Creates a continuing appropriation in the State Pension Funds Continuing Appropriation Act to cover any shortfall in payments of principal and interest on the new pension obligation bonds.