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Lawmakers and finance officials debate $29 million pension loan, short-term retiree payments
Summary
Members of the joint committee pressed the secretary of finance about short-term retiree payments, the proposed $29 million loan to the retirement settlement fund and options for phasing disbursement. Finance said some retiree payments can be covered for several pay periods by recent awards but the larger loan requires trustee conditions.
Chair members and finance officials debated options to meet near-term retiree payments and a proposed $29 million loan to satisfy the retirement settlement fund during a joint committee session.
The committee pressed the secretary of finance about timing and durability of available funds. Representative Marissa Flores asked whether the administration should take out a single $29 million loan or do it in smaller tranches. The secretary replied, “yes, it has been authorized to pursue a $29,000,000 loan,” and said the finance office prepared two budget scenarios showing different impacts of taking the loan or not.
Why it matters: The settlement schedule requires quarterly transfer percentages that the commonwealth must meet. Committee members worried that missing payments could trigger trustee hearings or court action;…
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