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Pritzker is proposing the state increase its statutory funding
ratio goal for its pension funds to 100% by fiscal year 2048.
The current goal was established by former Gov. Jim Edgar and
the Illinois General Assembly in 1994, which created a 50-year
plan to get the state to a 90% funding ratio by 2045.
The state, at a 44% funding ratio, is home to the country’s
worst pension crisis.
During a House Personnel and Pensions Committee hearing, Alexis
Sturm, director of the Governor’s Office of Management and
Budget, noted the plan shows annual required contributions to
the state’s pension funds are estimated to reach $18 billion by
2045 and afterwards “drop off drastically.”
State Rep. Steven Reick, R-Woodstock, asked Sturm if there will
be any last-minute pension enhancements added to the proposal.
“The governor’s intent was to talk about this proposal in the
context of pension funding,” said Strum.
“So you can’t answer today that there is not going to be some
kind of pension sweetener language added to the budget at the
last moment,” said Reick.
“I don’t believe so but the General Assembly passes the
legislation, not the governor,” said Sturm.
“It always comes to us at 3 in the morning and we don’t have
much to say about it,” said Reick.
Proposed Tier 2 pension enhancements in Illinois could come at a
taxpayer cost of "billions," according to one lawmaker.
“We passed through the pensions committee a couple bills that
are going to put billions of dollars onto the taxpayer when
property taxes are already out of control,” said state Rep.
Blaine Wilhour, R-Beecher City.
Illinois has an unfunded pension liability of over $140 billion.
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