ICMA joined 17 national state and local government associations in a letter opposing any Congressional legislation that would require state and local pension plan sponsors to file an annual report with the U.S. Department of Treasury disclosing their plan liabilities as well as a supplemental report restating the liabilities with a “risk free” assumed rate of return.  Representative Devin Nunes has sought support for legislation he calls the Public Employee Pension Transparency Act” (PEPTA) and recently sent a letter to colleagues seeking cosponsors.

Such legislation would mandate a costly, duplicative, and complex layer of new federal reporting on top of existing state and local accounting and reporting requirements. PEPTA also threatens to eliminate the tax-exempt bonding authority of state and local governments.