Politics & Government

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.

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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.

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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.

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