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Illinois’ five state pension funds have a collective unfunded
liability of $140 billion. While the number has fluctuated over
the years, it still remains among the largest unfunded
liabilities in the country and is sighted by ratings agencies as
a concern.
Illinois Comptroller Susana Mendoza, who cuts checks from the
taxpayers’ checkbook, said with news of growth of general
revenue funds, she’s making both the July and November payments
this month.
“The month of February is always our worst month, and the month
of November is also a very tough month from a cashflow
perspective,” Mendoza told The Center Square. “If I'm able to
actually prepay those tough months in good months, then that
really helps.”
The total payment for pensions to cover the two months is more
than $1.7 billion.
“That will allow funds to remain invested for a few months
longer because of the prepayment and possibly will produce an
extra $20 million for retiree pensions,” Mendoza said.
This is the second prepayment Mendoza has made.
“Now that's in addition to the estimated $7 million gained when
the Illinois Office of Comptroller did this exact same thing
back in July of 2024,” she said.
Mendoza fought for the ability to make early pension payments.
“The longer we have money working in a pension system, the
better the returns, and the less that those pension systems have
to think about drawing down payments,” she said.
Until last year, the comptroller could make just one payment to
the pension systems each month. Mendoza worked to change that to
make early payments where possible.
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