Comptroller Susana Mendoza Praises Adoption of Pre-Pay Pension Option in the New State Budget

[June 06, 2024]  Comptroller Mendoza’s proposal allowing her office to make advance payments for the state’s required pension contributions was included in the budget implementation bill, which was passed by the General Assembly last week and is expected to be signed by Governor Pritzker today.

“I continuously try to identify ways in which the Office of Comptroller can have a greater impact on paying down debts. This is an excellent tool we’ve created that allows for prepayment of pensions, much like I have for the state’s medical bills when revenues are strong,” Comptroller Mendoza said. “Making payments earlier than usual will give the five retirement systems greater predictability and stability for their investment portfolios. Paying down pension debt quicker is good for taxpayers.”

Currently, Illinois law requires that set payments to each pension system be made monthly. The law does not allow for additional payments to the pension systems during the month.

The new language allows Comptroller Mendoza to make additional payments over the required amount in months with strong revenues. The pension funds in turn will use those extra payments to pay annuitants, allowing funds already invested to grow and strengthening the state pension portfolio overall.

“The fact that this cash management tool is even available to us is a testament to the hard work we’ve put into turning around the state’s fiscal health,” Mendoza said.