§ 16951 Pension Bond Proceeds Abatement

• •If the state uses bond money to pay pensions for workers paid from the General Fund, it must pay back that money to the General Fund.
• •The state pays back the money every 3 months (quarterly).
• •The amount paid back is the same as the pension payments made from the bond money.
• •The Director of Finance checks the numbers, and the law says this must happen even if other laws say something different.

The state borrows $100 million by selling bonds to pay pensions for teachers. The teachers' salaries come from the General Fund.

The state must pay back $100 million to the General Fund in small chunks every 3 months. If they pay $25 million in pensions from the bond money in one quarter, they must put $25 million back into the General Fund that same quarter.