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Pensions A state's unfunded pension liability ― the difference between what a state owes as its required employer contribution to pension plans for state employees and what it has actually paid ― affects everything from the revenue available to fund public services like education and healthcare, to a state's bond rating and ability to pursue capital improvement projects. After decades of neglect from both Democratic and Republican administrations, Illinois now has the greatest total unfunded pension liability in the nation. How policymakers deal with it going forward is everyone’s concern, because the ultimate resolution of Illinois' obligation to pay its unfunded pension liability will directly impact the state's solvency and ability to continue providing essential services.
The Illinois Retirement Security Initiative (IRSI)
Working with its partners, CTBA created the Illinois Retirement Security Initiative to address these issues and create and advocate for policies to fix our pension funding problem. Click here to find out more about the IRSI or to become an endorser.
IRSI Newsletter The Illinois Retirement Security Initiative sends out a monthly newsletter on retirement security issues in Illinois and across the country
IRSI Analysis & Reports Chicago Tribune blames public sector employees for pension shortfall! Read IRSI's Response (May 2007)
Illinois Pension Funding Problem: Why it Matters (November 2006)
Pension Funding and the FY 2008 Budget
Summary of the Commission on Government Forecasting and Accountability Report on the Financial Condition o f the Illinois Public Employee Retirement Systems, July 2007
IRSI illustrates the source of Illinois' unfunded pension liability on this easy-to-use fact sheet. IRSI gives you a glimpse of the reality of Illinois public servants: fact Sheet The pension unfunded liability cannot be legislated away; the debt must be repaid. This means that when Illinois eventually decides to deal with the burgeoning unfunded liability, money will have to be taken from elsewhere, i.e education, transportation, human services, etc. Read: Illinois burgeoning unfunded liability, more than a pension problem!
Frequently Asked Questions Q. What is a defined benefit system? Q. What is a defined contribution system? Q: Aren’t public employee pension benefits extravagant? Q: Aren’t defined benefit pension systems a financial burden to taxpayers? Q. Aren’t defined contribution investment returns better than defined benefit investment returns? Q. Aren’t defined contribution plan fees and expenses lower than those of a defined benefit plan? Q. Aren’t all defined benefit retirement systems severely underfunded? Q. Aren’t all private sector employers eliminating their defined benefit plans? Q. Don’t employees prefer defined contribution plans? Q. What is the source of Illinois burgeoning unfunded pension liability?
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