City of Brockton, Mass., is considering issuing pension obligation bonds to close the nearly $150 million shortfall in the Brockton Contributory Retirement System, said Harold P. Hanna Jr., executive director. The pension fund currently has assets of around $150 million.
The Brockton city council is preparing to issue an order for the pension obligation bonds, and will then send that legislation to the Massachusetts Legislature for approval.
Meanwhile, the Brockton pension fund tomorrow will interview finalists in its search for an actuary that would determine the exact amount of the unfunded liability, Mr. Hanna said. The city hopes to get state approval to issue the bonds before the end of its current fiscal year on June 30, Mr. Hanna said.
The pension fund would then need to review its asset allocation to reflect its fully funded status, said Dick Zaccaro, the H.C. Wainwright consultant who is assisting.