The Kansas House of Representatives voted Wednesday to issue $1.5 billion in pension obligation bonds for the Kansas Public Employees Retirement System, Topeka.
The measure, aimed at boosting assets and reducing the state's long-term contributions to the pension fund, narrowly passed the House with a 67-57 vote. It now moves to the Senate.
Last month, the Senate passed a bill for a $1 billion bond issuance for the $16 billion KPERS.
The bills' sponsors could not be reached for comment on the two proposals.
The pension fund had $9.8 billion in unfunded liabilities and a 60% funding ratio as of Dec. 31, 2013.
The General Assembly authorized a $500 million bond issuance for KPERS in 2003. Kristen Basso, a KPERS spokeswoman, previously told Pensions & Investments that “investment return on the proceeds has exceeded the bond rate by more than $174 million.”
Ms. Basso could not be reached for additional comment by press time.
