Tax and Budget
New Details Emerge on Illinois' "Tier 3" Pension Plan
Release: September 27, 2017
Illinois' fiscal year 2018 budget introduced major changes to the state's public pension systems in an attempt to grapple with Illinois' roughly $130 billion in unfunded liabilities. One of the most important aspects of these changes was a new package of benefits. This new package, called "Tier 3," introduced a hybrid defined benefit-defined contribution plan in addition to the defined benefit plans of Tier 1 and Tier 2.
Taxing Retirement Income
Release: April 5, 2011
Illinois does not currently tax pensions or retirement funds such as 401(k) plans. This Fact Sheet provides an estimate how much revenue could be generated by taxing some retirement income.
The Illinois Pension Funding Problem: Why It Matters
Release: November 20, 2006
An analysis of the five Illinois retirement systems finds that the state's worst-in-the-nation unfunded pension liability has grown by more than $7 billion in just the last two years.