This afternoon the House passed SB 1129, a bill allowing local units of government to bond for costs associated with switching from defined benefit (DB) to defined contribution (DC). In its current version the bill also allows for bonding for unfunded accrued liability for health care. This option is available to communities with a AA bonding rating. The bill will head to the Governor once the Senate concurs.
This bill is half of the pension flexibility package the League has been pushing. The other bill, HB 5725 that amends the MERS statute for more flexibility, remains on the House floor. We’ll be pushing for that bill to go to the Senate during the lame duck session.
Samantha Harkins is the Director of State Affairs for the League and handles municipal finance and labor issues. She can be reached at 517-908-0306 or email at [email protected]