CHICAGO — Local governments in Michigan would be able to issue general obligation bonds to cover costs tied to shifting to a 401(k)-style retirement plan as well as for other-post employment benefit liabilities under legislation sent to Gov. Rick Snyder Friday.

Senate Bill 1129 is an effort to aid local governments’ transition to a less-costly employee retirement system and help bring down retirement liabilities, which some local officials say threaten their fiscal stability. The measure moved quickly through the state House and Senate, which approved it last Thursday with only one change since it was introduced in early summer.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.