The state of Wisconsin restructured almost $1 billion in pension bonds this month, to reduce interest rates that spiked because of turmoil in the financial markets.
Frank Hoadley, capital finance director for the state, said the $948 million worth of variable rate bonds were sold in December 2003 to fund half of a $1.8 billion unfunded liability for prior service.
The other half was fixed rate bonds.
The money actually is a small piece of the total pension picture for the $88 billion Wisconsin Retirement System, which includes employees and retirees of the state and numerous local governments.