AN ACT AUTHORIZING THE TOWN OF TEWKSBURY TO ISSUE PENSION FUNDING BONDS OR NOTES.
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 Tewksbury may issue bonds or notes from time to time in an aggregate amount not to exceed $5,000,000 for the purpose of funding the town’s liability attributable to the additional benefits payable under the early retirement incentive programs authorized by chapter 116 of the acts of 2002 and chapter 46 of the acts of 2003 and an aggregate amount not to exceed $50,000,000 for the purpose of funding the town’s unfunded pension liability and to provide for the issuance costs and other necessary or incidental expenses. 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 of not more than 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.
SECTION 2. 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 selectmen, 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 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 town of Tewksbury to the Middlesex retirement system; allocated solely to reduce the unfunded pension liability to which the bonds or notes relate; invested in any investments which are permitted under chapter 32 of the General Laws; and otherwise held and expended by the Middlesex retirement system in accordance with law.
SECTION 4. Before the issuance of bonds or notes under this act, the town 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 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 issuance of bonds or notes under this act relates in part to employees of a governmental unit other than the town of Tewksbury, that governmental unit shall be responsible for reimbursing the town for the proportion of the annual debt service expense paid by the town 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. 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 governmental unit in the retirement system other than the town, by each such governmental unit’s proportional share of the annual debt service expense as determined in this act and shall decrease the amount to be paid by the town by an equal amount. The town shall have the same legal rights and authority as the retirement board of the town to collect any amount so assessed by the retirement board to any such 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 Middlesex retirement system 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 January 13, 2009