Pew Center: Illinois’ pensions come up short

From press release

A report released by the respected research group the Pew Center on the States found Illinois ranks last when it comes to funding the state’s pension systems.

According to the report, Illinois’ unfunded liability surpasses $54 billion—or only slightly more than half of what the state needs to pay to its five state retirement funds. The Pew Center noted that only 54 percent of the state’s pension liability is funded, which is far below the 80 percent funding level recommended by experts.

It was also highlighted that Illinois has consistently deferred making its required payments into the systems, “paying less than 60 percent of the required amount in each year since 2005” and issuing “$3.5 billion in bonds to pay for its 2010 actuarially required contribution.”

The Pew Center’s study only researched pension funds through fiscal year 2008 and does not even account for the recent stock market crash—and the serious impact that had on the value of state pension investments.