This morning the House Financial Liability Reform Committee heard testimony on House Bill 5279, legislation that would allow communities with an A credit rating to bond for pension and other post employment benefit (OPEB) costs if that community obtains bond insurance.
In 2012 the Governor signed Senate Bill 1129, legislation that allows communities with a AA bond rating or better to bond for the costs of switching from a defined benefit to a defined contribution plan or for OPEB costs. This tool is very important for communities.
A number of communities with A bond ratings wanted to be included, and it was made clear by the Department of Treasury in 2012 that the administration would not expand the scope. The Department is opposed to HB 5279 as well, but we will continue to push forward.
The committee did not vote on the legislation.
Samantha Harkins is the Director of State Affairs for the Michigan Municipal League. She can be reached at 517-908-0306 or email at [email protected]