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HomeGovernment CodeDiv. 4Pt. 3Ch. 8Art. 1§ 16941 Pension Obligation Bond Issuance

§ 16941 Pension Obligation Bond Issuance

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 16941 Pension Obligation Bond Issuance

Key Takeaways

  • •The law helps the state pay for pension obligations in a fair and cost-effective way.
  • •The state can issue bonds (like borrowing money) to pay for pensions, but only if it will save money in the long run.
  • •The state’s finance director must decide if borrowing money now will help lower future pension costs.
  • •This is only allowed if changes in the pension law reduce how much the state has to pay into the pension system.

Example

Imagine the state owes money to retired teachers and police officers for their pensions.

If the state can borrow money now at a low cost to pay some of these pensions early, it might save money later. The finance director checks if this is a good idea before borrowing.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 16941 Pension Obligation Bond Issuance

It is the intent of the Legislature, in enacting this chapter, to provide for an efficient, equitable, and economical means of satisfying certain pension obligations of the state. Bonds shall be issued pursuant to this chapter only when the Director of Finance determines that the state’s pension obligations are anticipated to be reduced as a result of changes in the Public Employees’ Retirement Law that reduce contributions to the Public Employees’ Retirement System, and it is in the best interest of the state to issue bonds pursuant to this chapter to accelerate a portion of the state’s anticipated lower pension obligations. (Added by Stats. 2004, Ch. 215, Sec. 4. Effective August 11, 2004.)

Last verified: January 22, 2026

Key Terms

pension obligationsPublic Employees’ Retirement LawDirector of Financebonds

Related Statutes

  • § 16942 State Pension Payment Obligations
  • § 16943 State Bond Financial Obligations
  • § 16945 Pension Bond Issuance Authority
  • § 16950 Bond Funded Pension Transfers
  • § 16951 Pension Bond Proceeds Abatement

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 16941.
View Official Source