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County Looks To Fund Pensions With Bonds

County Administrative Officer Fred Homan asks to fund pension liabilities with $255 million in debt.

Baltimore County officials are asking the County Council to approve the issuance of $255 million in bonds to fund the pension system.

County Administrative Officer Fred Homan told the council during a Tuesday lunch briefing that he wants to use the money to invest in the pension system.

"There are market risks to a pension bond deal," Homan said, adding that the risk is not achieving the 4.25 to 4.5 percent rate of interest the county believes the bonds will sell for.

Currently, the nearly $2 billion pension system is funded at nearly 77 percent.

Homan said the move is expected to lower long-term pension system costs over the next 30 years.

The request will be part of a two-bill package introduced Monday night with a vote expected in October.

Homan is expected to later Tuesday afternoon following a council work session.

Stay with Patch for updates on this story.

KAG September 13, 2012 at 01:36 PM
JD, so true. They are playing with fire and our future generations will get burned.
Joe September 13, 2012 at 01:44 PM
A GREAT story about Solyndra. Here is a great American. "Many Americans were upset when solar-panel maker Solyndra filed for bankruptcy last September owing taxpayers more than $500 million, but retiree Robert Grady Jr. was different. The more he read about the failed company, the more irritated he became. Finally, weeks after the bankruptcy case began, Mr. Grady did something he’d never done before. He filed a claim in U.S. Bankruptcy Court. It turned out to be the biggest single claim in the case — $535 million — but it wasn’t on behalf of himself. Rather, Mr. Grady, 57, made the claim on behalf of U.S. taxpayers because he said he didn’t trust Department of Energy lawyers to look out for taxpayers’ interests. The retiree said he wasn’t looking for any money. He just wanted the loan money returned to the U.S. Treasury. Now, after more than a year, the bankruptcy case finally is grinding to a halt. Among the thousands of claims filed in the case, Mr. Grady’s is perhaps the most unusual."
Joe September 13, 2012 at 01:44 PM
"Mr. Grady filed his $535 million claim on a one-page handwritten form submitted to the U.S. Bankruptcy Court in Delaware on Nov. 11, 2011. In response to a question with regard to the basis for his claim, he wrote, “Money Loaned by DOE, representing U.S. taxpaying citizen.” Solyndra received $535 million in federal loan guarantees in 2009 and was championed by, among others, Vice President Joseph R. Biden, but its bankruptcy last year fueled an ongoing congressional probe and turned into a big political headache for the Obama administration. In the 10 months since Mr. Grady filed his claim, he has followed the case closely from his computer at home in Redmond, Wash., and he has read just about all of the more than 1,000 docket entries filed so far during the proceedings. Yet he has never had any contact with anybody from the bankruptcy court or with any of the many lawyers in the case. Still, a few weeks ago, Mr. Grady noticed finally that somebody in the case was paying attention." http://www.washingtontimes.com/news/2012/sep/12/solyndrasuit-fullrefund-totaxpayers/
fred September 13, 2012 at 03:46 PM
union and proud of it.thank you. also funding my own retirement.
Tim September 14, 2012 at 05:36 PM
BlutAusNord: Fair concerns. I do support several major Democrat 'planks', and I support some Republican ones as well that liberals generally can't (or refuse) to see reason on. I'm not a fan of this reckless spending, nor am I a fan of QE3, which isn't going to help anything imho. It's only the Fed panicking, and it's only going to make matters worse for this country going forward. Printing more money is what banana republics do. Look, I'm not an apologist for either party these days. For most Democratic spending fiascos, I can probably name a Republican one, like Haliburton. The Keystone Pipeline is an interesting situation. Clearly, it benefits the country more then it harms - because it's Canadian oil. Obviously, there are environmental concerns, but for me personally, as long as we aren't mining our own country largescale, I'm fine with it. If Canada wants to strip mine its own country and sell us the oil...then I'm all for it.

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