Illinois' unfunded pension liability rose
in FY 2013: report
Send a link to a friend
[December 05, 2013]
CHICAGO (Reuters) — A day
after the Illinois Legislature passed a sweeping reform of the state's
troubled pension system, a state legislative commission reported on
Wednesday that Illinois' long-term funding gap for its public pension
systems rose only slightly at the end of fiscal 2013.
The Commission on Government Forecasting and Accountability said
the state's unfunded pension liability for its five pension funds
inched up to $97.46 billion in fiscal 2013 from $96.8 billion at the
end of fiscal 2012.
Strong investment returns were the largest single factor in keeping
Illinois' unfunded pension liability from rising further, the report
Investment returns also helped improve the funding ratio for the
Illinois funds, to 41.1 percent in fiscal 2013 from 39 percent in
fiscal 2012, according to the report.
"Higher-than-expected investment returns were the largest driver of
the slight uptick in the funding ratio," the commission's report
Growing pension costs, which are squeezing out funding for core
state services such as education, have led to a series of credit
rating downgrades for Illinois, which now has the lowest ratings
[to top of second column]
On Tuesday, the Democrat-controlled legislature sent a bill to
Governor Pat Quinn that backers have said will cut the unfunded
liability by 20 percent and save the state $160 billion over 30
The commission also reported that state general funds revenue was up
$584 million or 4.6 percent in the first five months of fiscal 2014
compared to the same period in fiscal 2013.