SEC Settles with Illinois over Pension Funding DisclosuresThe SEC entered into a settlement with the State of Illinois over charges that the state misled investors by failing to disclose the degree of underfunding in its employee pension plans when it issued $2.2 billion in bonds from 2005 through 2009. As part of the settlement agreement, the state implemented a series of remedial measures, including retaining disclosure counsel, enhancing disclosures in the pension section of its future bond offering documents, developing training materials, and adding formal disclosure controls regarding pension disclosures. The state also designated a disclosure committee responsible for collecting information evaluating the state’s disclosure obligations and approving bond offering disclosures. The SEC settled a similar case with the State of New Jersey in 2010.
Click here for the settlement agreement.
|
