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  • Acts
  • 2004
  • Chapter 427 AN ACT AUTHORIZING THE TOWN OF HINGHAM TO ISSUE PENSION OBLIGATION BONDS.

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 town of Hingham may issue, at 1 time or from time to time, bonds or notes for the purpose of funding the unfunded pension liability of the retirement system of the town. The proceeds of any such issuance shall be transferred by the town to the retirement system. The term of any such bond or note shall not exceed 30 years from the date of issuance and the amount of any such bond or note shall be considered as outside the limit of indebtedness prescribed in section 10 of chapter 44 of the General Laws. No such bonds or notes shall be issued without the approval of the board of selectmen of a loan order by a 2/3 vote upon a recommendation of the finance director of the town and the town accountant. After the board of selectmen has approved the loan order, the finance director, town accountant of said town shall submit the order and a plan demonstrating how the town will finance and allocate the debt service associated with the bonds or notes to the executive office for administration and finance, and no bonds or notes authorized by the act shall be issued until the secretary for administration and finance has approved the plan. Except as otherwise provided in this act, such bonds or notes shall be subject to the provisions of said chapter 44.

SECTION 2. The aggregate principal amount of the bonds or notes issued from time to time under this act shall not be greater than the amount sufficient to extinguish the unfunded pension liability of the retirement system of the town of Hingham and the amount necessary to provide for the payment of costs of preparing, issuing and marketing such bonds or notes and for the payment of all other expenses incidental or related thereto. The retirement board of the town shall first determine the amount sufficient to extinguish the unfunded pension liability of the retirement system of the town in accordance with the report of a nationally recognized independent consulting firm, or by the consulting actuary generally retained by the retirement board. The public employee retirement administration commission shall receive a copy of the report and shall approve the unfunded pension liability amount. Such report shall also set forth the present value savings to the town reasonably expected to be achieved as a result of the issuance of such bonds or notes and shall be transmitted to the board of selectmen prior to final passage of any order authorizing the issuance of bonds or notes hereunder. In making the initial recommendation to said board of selectmen to adopt a loan order authorizing the issuance of bonds or notes under authority of this act the finance director and town accountant of said town shall indicate his approval of the aggregate principal amount of the bonds or notes as determined by the retirement board.

SECTION 3. The maturities of such bonds or notes shall be scheduled such that the annual combined payments of principal and interest for each issue shall be as nearly equal as practicable in the opinion of the finance director and town accountant of the town of Hingham; but the maturities of such bonds or notes may be scheduled so as to provide a more rapid amortization of principal.

SECTION 4. This act shall take effect upon its passage.

Approved December 16, 2004.