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Mackinac Center for Public Policy
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2012 House Bill 5726: Authorize local “pension obligation bonds”
  1. Introduced by Rep. Paul Opsommer (R) on June 5, 2012, to allow local governments to borrow money to cover unfunded employee pension liabilities, if the local has closed its traditional “defined benefit” pension system to new employees. Unlike other local government borrowing (usually called “bonding” or “selling bonds”), no vote of the people would be required, unless lenders (bond buyers) are given a “full faith and credit” repayment promise.
    • Referred to the House Appropriations Committee on June 5, 2012.