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  • Acts
  • 2006
  • Chapter 417 AN ACT AUTHORIZING THE ISSUANCE OF PENSION FUNDING BONDS BY THE CITY OF QUINCY.

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 Quincy may issue bonds or notes from time to time for the purpose of funding all or a portion of the unfunded pension liability of the retirement system of the city of Quincy. Bonds or notes issued under this act 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 Quincy under this act shall not exceed the amount which the retirement board of the city of Quincy, 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 Quincy as of a particular date and to provide for issuance costs and other necessary or incidental expenses. The determination of the retirement board of the city of Quincy 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 Quincy.

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 of 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 Quincy to the retirement board of the city of Quincy, 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 Quincy in accordance with law.

SECTION 4. Before the issue of any bonds or notes under this act, the city 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 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 and specifically approved the maturity schedule of the bonds or notes, if required by section 2.

SECTION 5. If the unfunded pension liability to be funded with the proceeds of an issue of bond or notes issued under this act relates in part to employees of a governmental unit other than the city, that governmental unit shall be responsible for reimbursing the city for the proportion of the annual debt service expense paid by the city for bonds or notes issued under this act that is equal to the proportion of the total unfunded pension liability to be funded with the proceeds of the bonds or notes that relates to that governmental unit.

SECTION 6. Notwithstanding any other general or special law to the contrary, any debt service on bonds or notes issued under this act to finance that portion of the unfunded pension liability applicable to school department personnel who are members of the retirement system of the city of Quincy shall be included in the computation of net school spending for the purposes of chapter 70 of the General Laws.

SECTION 7. This act shall take effect upon its passage.

Approved December 31, 2006.