A state committee made up of members of Gov. Bill Walker's administration on Monday approved borrowing as much as $3.5 billion to cover Alaska's pension shortfall. The three-member committee — deputy commissioners from the state commerce, administration and revenue departments — voted Monday afternoon to authorize the issuing of financial instruments called pension obligation bonds. The bonds haven't been issued yet and aren't expected to be sold until the last week of October. Members of Walker's administration traveled to New York City last week for meetings about the bonds with ratings agencies and financial firms. Two Walker administration officials, including Deputy Commerce Commissioner Fred Parady, said at Monday's meeting that interest rates are so low that it would be fiscally irresponsible not to consider issuing the bonds. The transaction is designed to save the state money on pension payments because the state assumes the borrowed cash will be invested and increase in value by 8 percent annually — while the interest payments on the borrowed cash are expected to be less than 4 percent.