Kan. proposal for $1.5B in pension bonds advances
Published on -4/5/2013, 2:15 PM
TOPEKA, Kan. (AP) -- A Kansas Senate committee has approved a bill authorizing $1.5 billion in bonds to bolster the short-term financial health of the state pension system for teachers and government workers.
The Ways and Means Committee's voice vote Friday sends the measure to the Senate for debate, probably after lawmakers return from their annual spring break in May. The House approved the bill last week.
The state pension system's assets now cover only 53 percent of its long-term obligations, and issuing bonds would allow the state to boost that percentage to 61 percent in 2015 and accelerate its rise to 100 percent by 2033.
But the state would be gambling that its pension system would earn more from investing the bond funds than it would pay in interest to bond buyers.