May 6, 2019
Underscoring concerns about the financial health of the region and state, the state legislature’s fiscal unit has released a report showing that Illinois’ unfunded pension obligations have reached a record $133.5 billion. The shortfall among the state’s five pension funds rose $4.8 billion in fiscal 2019, a 3.7% year-over-year increase.
The funded ratio of the funds rose 40 basis points Y-O-Y to 40.2%. However, it’s still below what it was in 2011, according to Crain’s Chicago Business.
The report covers pension systems for public school teachers, white-collar state workers, university employees, judges and Illinois General Assembly members. Although the gap is widest for the latter two, Crain’s reported that none of the funds has more than 42.7% of the assets required for its pension obligations.
By state law, the pension systems must be 90% funded by 2045. Gov. J.B. Pritzker wants to extend that deadline to 2052.
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