CTA Gets Green Light for Benefit Plan Bond Sale

July 18, 2008 (PLANSPONSOR.com) - A review by state of Illinois officials has given the Chicago Transit Authority approval to sell bonds to provide funding for the CTA employee retirement and retiree health care plans.

The go-ahead follows legislative approval in January of a sales tax increase to fund operations at Chicago-area transit agencies, and allow the CTA to issue about $2 billion in bonds to rescue its troubled pension and retiree health care trust, the Chicago Tribune reported.

Illinois Auditor General William Holland issued a report finding that the CTA and the boards for the agency’s pension and retiree health care plans provided the required reports for review by Holland’s office.

It provides approval for the CTA to sell bonds starting within 120 days as a solution to its underfunded retirement and retiree health care systems.

The state review report is available    here .