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Lowell considers PRIT changes, extended amortization and cautious bond option to ease pension costs
Summary
City staff outlined possible state-level pension actions — PRIT investment enhancements, optional extended amortization schedules, or pension obligation bonds — noting current law requires full funding of the unfunded actuarial liability by 2036.
Baldwin told the subcommittee that Lowell’s local retirement system is administered under Chapter 32 and invested through the state investment vehicle PRIT; he said one legislative avenue would be to seek PRIT investment enhancements or an optional extended amortization schedule to lower near-term assessments.
He also mentioned pension obligation bonds as a theoretical option but cautioned they depend heavily on market conditions and can be risky; staff noted the current funding schedule requires full funding of the unfunded actuarial liability by 2036 under existing law.
