Pension obligation bonds being pitched as a remedy to funding woes in two states are meeting a mixed fate from lawmakers.

Last week in Kansas, the state Senate passed a bill, by a vote of 21-17, that would authorize the sale of $1 billion in POBs, the proceeds of which would be infused in the Kansas Public Employees' Retirement System pension fund, which is roughly 60 percent funded, with a projected $9.8 billion shortfall.

The $1 billion in new bonds is less than the $1.5 billion that Republican Gov. Sam Brownback's administration had lobbied for.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.