Alaska to Sell $2.6 Billion in Pension Obligation Bonds
- Debt would be used to help fund teacher's pension system
- Expanded amount would cover public employee retirement trust
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Alaska wants to increase the size of its potential 2016 pension obligation bond to $2.6 billion, a billion dollar jump from earlier proposals.
In November, Governor Bill Walker announced plans to explore the possibility of a $1.6 billion pension obligation bond to help fund the teacher’s pension system, dusting off a plan from 2008 that was ultimately scrapped. In the final weeks of 2015, Walker increased that figure to $2.6 billion, expanding the scope of the funds to involve the state’s public employee retirement trust as well as the teacher’s pension system, said Deven Mitchell, the state’s debt manager at the Alaska Department of Revenue.