AN ACT RELATIVE TO THE ISSUANCE OF PENSION FUNDING BONDS BY THE CITY OF SPRINGFIELD.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. The city of Springfield may issue bonds or notes from time to time for the purpose of funding all or a portion of the unfunded pension liability, so-called, of the retirement system of the city of Springfield. Bonds or notes issued hereunder shall be outside the limit of indebtedness prescribed in section 10 of chapter 44 of the General Laws, shall be issued for terms not in excess of 30 years from their date of issue and, except as otherwise provided in this act, shall be subject to the applicable provisions of said chapter 44. The aggregate amount of bonds or notes which may be issued by the city of Springfield under this act, shall not exceed the amount which the retirement board of the city of Springfield, with the approval of the city treasurer and mayor, shall determine to be necessary to be issued to fund the unfunded pension liability of the retirement system of the city of Springfield as of a particular date and to provide for issuance costs and other expenses necessary or incidental thereto. Such determination of the retirement board of the city of Springfield 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 retirement board of the city of Springfield.
SECTION 2. The maturities of bonds or notes issued under this act (i) shall be arranged 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 mayor, or in accordance with a schedule providing for a more rapid amortization of principal, or (ii) shall be arranged so that for each issue the annual combined payments of principal and interest shall be in amounts specifically approved by the secretary for administration and finance.
SECTION 3. 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 city of Springfield to the retirement board of the city of Springfield, shall be allocated solely to reduce the unfunded pension liability to which the bonds or notes relate, shall be invested in any investments which are permitted under chapter 32 of the General Laws, and shall otherwise be held and expended by the retirement board of the city of Springfield in accordance with law.
SECTION 4. Prior to the issue of any bonds or notes under this act the city of Springfield 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, if any, and plan to finance the principal of and interest on the bonds and notes, 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 for administration and finance relating to the bonds and notes and no bonds or notes shall be issued hereunder until the secretary has approved the plan and specifically approved the maturity schedule of the bonds or notes if required by section 2 of this act.
SECTION 5. If the unfunded pension liability to be funded with the proceeds of an issue of bonds or notes issued under this act relates in part to employees of a governmental unit other than the city of Springfield, the employees of which are members of the retirement system of the city of Springfield, each such governmental unit shall be responsible for reimbursing the city of Springfield for such proportion of the annual debt service expense paid by the city of Springfield for bonds or notes issued under this act as is equal to the proportion of the total unfunded pension liability to be funded with the proceeds of the bonds or notes as relates to that governmental unit. Notwithstanding any general or special law to the contrary, the public employee retirement administration commission shall increase the annual amount to be certified under section 22 of chapter 32 of the General Laws as the amount necessary to be paid by each such governmental unit other than the city of Springfield by each such governmental unit's proportionate share of the annual debt service expense as determined herein. The city of Springfield shall have the same legal rights and authority as the retirement board of the city of Springfield to collect any amount so assessed to any such governmental unit.
SECTION 6. Notwithstanding chapter 70 of the General Laws or the provisions of any other general or special law to the contrary, the portion of the annual debt service paid by the city of Springfield for bonds or notes issued under this act applicable to school department personnel who are members of the city's retirement system shall be included in the computation of net school spending for the purposes of said chapter 70 or any other provision of law.
SECTION 7. This act shall take effect upon its passage.