As part of its nationwide review of municipal bond offerings, the SEC charged the state of Kansas with failing to properly disclose material pension liabilities and other risks to investors. According to the SEC’s cease-and-desist order, the state’s offering documents failed to disclose the state’s pension system was significantly underfunded and created a repayment risk for investors in those bonds. The SEC previously sanctioned New Jersey for failing to disclose to investors that it was underfunding the state’s two largest pension plans. It also charged Illinois last year for its misleading pension disclosures. SEC
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