A bill that convincingly passed through Colorado's House of Representatives authorizing up to $12 billion in Pension Obligation Bonds failed to make it out of that state's Senate Finance Committee this week.
It was the latest of a recent surge in POB interest, as state sponsors of underfunded pension plans rush to consider the controversial funding strategy before an imminent rise in interest rates.
In Colorado, proceeds from the issuance would have gone to close the $23 billion funding gap in Colorado's Public Employee Retirement Association plan. Proponents included Gov. Jon Hickenlooper, a Democrat, and his Treasurer, according to the Denver Business Journal.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
