Report: Illinois’ pension funding method is unsustainable

Posted on January 2, 2015

By Illinois News Network

SPRINGFIELD – An actuary hired by the state’s Auditor General concludes the state’s pension funding method increases the risk that the plans are becoming unsustainable.

The executive summary of the Cheiron report said delaying payments does not meet generally acceptable principles.

The AG-hired actuary concluded the funding method of ninety-percent by 2045 does not meet generally acceptable actuarial principles.

At a minimum, the actuary said, future plans should focus on fully funding the funds to avoid continued systematic underfunding of the systems. The report said continuing the practice of deferring contributions increases the risk of the plans becoming unsustainable.

The report says Illinois taxpayers will pay more than $7.5 billion for the five different state employee retirement systems in Fiscal Year 2016.

 
 

 

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