Illinois will begin issuing between $4 billion and $6 billion in pension obligation bonds during the first week of June, confirmed Becky Carroll, communications director in the governors office of management and budget. The issuance of the 30-year taxable bonds could reach up to $10 billion over the next year, she said.
Proceeds will fund a significant portion the states required 2003 contributions and all of the states required 2004 contributions to its five statewide pension plans, which have total assets of $40.3 billion as of June 30, 2002, Ms. Carroll said. The state pension plans will receive $300 million in proceeds from the bonds for the remainder of 2003 and $1.6 billion in 2004, she said.
Bear Stearns and UBS PaineWebber are co-lead underwriters.