Pension obligation bonds are one tool a municipality or state may use to fund its defined benefit (DB) pension plan. Like most funding vehicles, they come with risks and possible rewards. This white paper outlines the process that the town of West Hartford, Conn., used to assess the associated risks and rewards of its issuance. We also examine the measures the city put in place as part of its pension obligation bond package to reduce risks. The paper begins with an overview of pension obligation bond mechanics.