(The Center Square) – The Illinois Comptroller says she is confident that the condition of Illinois’ pension system is headed in the right direction.
The state’s unfunded pension liabilities have been a sore thumb for decades. The Commission of Government Forecasting and Accountability reported that Illinois’ pension system experienced growth in debt last year of about $2.5 billion.
Illinois Comptroller Susana Mendoza recently made the first pension prepayment as allowed under a new law. The change allows Mendoza to pay more into state pensions earlier in the year.
“The pre-payment of monthly state contributions allows the retirement systems to keep assets working to generate investment returns longer, improving the financial condition of the systems and potentially reducing required state contributions in the future.,” said Mendoza.
She added that it is anticipated that pre-paying $422 million of the state’s monthly pension contribution will allow funds to remain invested for a few months longer, generating an additional $7 million.
In his fiscal year 2025 budget proposal presentation, Gov. J.B. Pritzker said adding three additional years to the funding payment plan will get the state “on a path to 100% funded like peer states.” The current goal was enacted by 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.
Last January, the Illinois Supreme Court endorsed the consolidation of local police and firefighter pension systems. The ruling dealt with a law Pritzker signed in 2019 intended to boost investment power and cut administrative spending for hundreds of municipal funds.
Mendoza said she is pleased the General Assembly and the Governor approved the change in Illinois law.
“There might be some people out there who just think that we just pay bills and not think about it,” said Mendoza to The Center Square. “Our office is always continuously looking creatively on how we can add more value for Illinois taxpayers.”
