Pension Funding

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Eric Skiff

The Illinois Teachers Retirement System voted last week to reduce the amount of money it assumes it will make from its investments. The board revised this rate of assumption down to 7 percent from 7.5 percent.

This change means that as lawmakers and the governor are putting together a budget for next fiscal year, they will have to come up with a projected $420 million more than what they might have expected to pay into the retirement system for teachers outside of Chicago. Illinois' total unfunded liability for all its pension funds is pegged at $111 billion. 

House floor
Brian Mackey / WUIS

Illinois has a constitutional requirement that its budget must be balanced — spending has to equal revenues every year. But is the Illinois budget ever really balanced?

Brian Mackey put that question to two people who closely follow Illinois' finances: Charlie Wheeler, director of the Public Affairs Reporting at the University of Illinois Springfield, and Jamey Dunn, editor of Illinois Issues.

    

Illinois Issues: The Next Pension Time Bomb

Mar 30, 2016

Illinois has more than $100 billion in pension debt. So far, attempts to fix it have been mostly illegal.

Sarah Mueller WUIS

Illinois lawmakers are working on a budget for next year, but the state has gone nine months without a budget for this year. Governor Bruce Rauner's office made its case Wednesday before members of the Senate.

The Every Student Succeeds Act (ESSA) was signed into law by President Barack Obama a few months ago.

State Week logo (capitol dome)
Brian Mackey / NPR Illinois | 91.9 UIS

Illinois’ comptroller says the state doesn't have the cash to pay into the public pension systems next month, the governor suggests selling the aging Thompson Center in Chicago, and the former head of Chicago’s public schools pleads guilty to charges of corruption.  WBEZ's Becky Vevea and Lauren Chooljian joins the panel.
 

cityofchicago.org

Illinois Issues editor Jamey Dunn talks with University of Illinois Chicago political science professor Dick Simpson about Chicago's budget situation and why it matters even if you don't live there.

Michael J. Madigan headshot
ilga.gov

This week, Illinois House Democrats defeated Governor Rauner's "Right to Work" agenda.  Also, with the Illinois Supreme Court's decision last week, the future of state pension funding is still in question.

Charles N. Wheeler III
WUIS/Illinois Issues

While the fat lady may not yet have sung for the new law slashing pension benefits for public workers, she certainly seems to be warming up in the wings, courtesy of the Illinois Supreme Court.