Pension Obligations

  • Overview
  • Attorneys

Underfunded governmental pensions are a problem from coast to coast. As the economy began its downturn, governments across the nation realized the scope of the problem and began searching for methods to try to resolve the issue. Kutak Rock’s team of public finance attorneys has represented state and municipal governments with respect to the financing of all or a portion of their unfunded and current pension liabilities. We typically help them meet these complex financial needs by  issuing taxable general obligation bonds of the governmental entity. For example, we served as bond counsel to a state for its February 2011 issuance of $3.7 billion of taxable general obligation bonds to replenish its various pension funds. This transaction was the largest long-term governmental financing in the United States in 2011.

In addition to serving as bond counsel for governmental issuers seeking to remedy their pension systems’ shortfalls and liabilities, Kutak Rock’s public finance attorneys have developed an ongoing familiarity with market and regulatory expectations, expertise in the conduct of due diligence investigations, and experience in the evaluation of information for materiality relating to disclosure in offering statements with respect to the same.