Budget Amendment ID: FY2022-S3-106

OTH 106

Issuance of Pension Funding Bonds by the County of Plymouth

Messrs. Keenan and Brady, Ms. Moran, Messrs. O'Connor and Timilty moved that the proposed new text be amended by inserting after section ___ the following sections:-

SECTION ___. The county of Plymouth may issue bonds or notes from time to time for the purpose of funding all or a portion of its unfunded pension liability to the Plymouth County Contributory Retirement System. Bonds or notes issued under this act shall be issued for terms not in excess of 10 years from their date of issue. The aggregate amount of bonds or notes that may be issued by the county of Plymouth under this act shall not exceed the amount that the county treasurer and county commissioners shall determine to be necessary to be issued to fund that part of the unfunded pension liability of the county of Plymouth not currently paid by the additional deeds excise tax retention set forth in section 11 of chapter 64D of the General Laws as of a particular date and to provide for issuance costs and other necessary or incidental expenses. The determination of the county treasurer and commissioners of the unfunded pension liability shall be based upon the report of a nationally­ recognized independent consulting firm, which may be the consulting actuary generally retained by the Plymouth County Contributory Retirement System.

SECTION ___. The maturities of bonds or notes issued under this act shall: (i) be scheduled so that for each issue the annual combined payments of principal and interest shall be as nearly equal as practicable in the opinion of the treasurer and the board of commissioners, or in accordance with a schedule providing for a more rapid amortization of principal; or (ii) be arranged so that for each issue the annual combined payments of principal and interest shall be in amounts specifically approved by the secretary of administration and finance.

SECTION ___. Proceeds of any bonds or notes issued under this act, other than amounts to be applied to issuance costs or other expenses, shall be paid by the county of Plymouth to the Plymouth County Contributory Retirement System; allocated solely to reduce the unfunded pension liability to which the bonds or notes relate; invested in any investments that are permitted under chapter 32 of the General Laws; and otherwise held and expended by the Plymouth County Contributory Retirement System in accordance with law.

SECTION ___. Before the issuance of bonds or notes under this act, the county shall submit to the executive office for administration and finance a plan showing the amount of the bonds and notes to be issued, the amount of the unfunded pension liability to be funded with the proceeds of the bonds and notes, the proposed maturity schedule of the bonds and notes, the proposed allocation of, and plan to, finance the principal and interest on the bonds and notes, if any, the present value savings reasonably expected to be achieved as a result of the issue of the bonds or notes and any other information requested by the secretary of administration and finance relating to the bonds and notes. No bonds or notes shall be issued under this act until the secretary has approved the plan.

SECTION ___. This act shall take effect upon its passage.