HB 5726 Summary

• Adds definitions to the Revised Municipal Finance Act including "defined benefit plan," "defined contribution plan," "retirement program," and "unfunded pension liability."

• Allows municipalities to issue municipal securities without voter approval to fund unfunded pension liabilities when transitioning from a defined benefit plan to a defined contribution plan, provided tax obligations remain within legal limits.

• Requires municipalities issuing such pension-related securities to publish notice of intent, prepare a comprehensive financial plan analyzing retirement obligations, and obtain department approval within 30 days or approval is deemed granted.

• Permits pension-related municipal securities to be sold at discounts exceeding 10% of principal and exempts them from standard maturity and mandatory redemption requirements under Section 503.

• Exempts pension-related municipal securities and their interest income from state and local taxation.