Illinois adds $200 million to its 2024 pension contribution

Illinois Gov. J.B. Pritzker said Wednesday the state plans to contribute an additional $200 million to the state’s retirement systems, in a budget address for fiscal year 2024.

The additional amount, which would be contributed directly to the state’s Pension Stabilization Fund, is pending approval by the state’s General Assembly.

In his speech before the General Assembly, Mr. Pritzker cited four years of balanced budgets, increased revenues and the payment of short-term liabilities and some long-term state liabilities for the ability to make the extra payment.

The Pension Stabilization Fund was created in 2006 to make additional contributions to the five state retirement systems when state general fund revenues exceed certain thresholds each year. The state was able to contribute $500 million to the stabilization fund in the fiscal year ended June 30.

The state’s total required contribution to its five pension funds in fiscal year 2024 is $11.1 billion, according to a report published in December on the website of state auditor Frank J. Mutino. The report states the Illinois Pension Code’s method of establishing required contributions “does not adequately fund the systems.”

According to the report, the funding ratios for the five state retirement systems ranged from 22% to 45.2% as of June 30. That is an improvement over the funding ratio range of 19.3% to 43.8% a year earlier.

Those systems are the $63.3 billion Illinois Teachers’ Retirement System, Springfield; $22.9 billion Illinois State Universities Retirement System, Champaign; and three pension funds whose investments are overseen by the $23.9 billion Illinois State Board of Investment, Chicago. Those are the State Employees’ Retirement System, Judges’ Retirement System and General Assembly Retirement System.

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via rk2’s favorite articles on Inoreader

February 15, 2023 at 09:23PM

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