WASHINGTON — The nation’s 10 largest cities are making some progress managing billions of dollars of unfunded liabilities for health care and non-pension other post-employment benefits, and could decide to issue OPEB bonds, similar to pension obligation bonds, as a way to deal with the growing burden, Standard & Poor’s said in a new report.

The report — “Largest Cities Show Mixed Progress in Meeting Their OPEB Liabilities” — pointed out that while OPEB funding bonds, would turn a “soft” liability, with a less distinct funding schedule, into a “hard” annual debt-service liability, they may also help municipalities level their payments.

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