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,
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
shall be subject to the provisions of said chapter 44.
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
the aggregate principal amount of the bonds or notes as determined by the
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.
This act shall take effect upon its passage.