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The Chicago Transit Authority (CTA) is a step closer to selling $1.9 billion in pension obligation funds. The authority recently assembled a team of advisors and underwriters to help guide the transaction.

Recently passed state legislation authorized CTA to issue bonds to fund its pension program and establish a retiree healthcare trust fund. The bonds would be backed through new operating funds authorized in the state law.

The state now requires the pension program to be more than 60 percent funded through 2039 and 90 percent funded by 2060; as of Jan. 1, 2007, the employee retirement plan was 30 percent funded. CTA also must create an independent health-care trust to manage and provide retiree benefits.