Pritzker Budget Undershoots Illinois Pensions by $5.4 Billion as Debt Tops $143.5 Billion
Updated
Updated · Illinois Policy · May 28
Pritzker Budget Undershoots Illinois Pensions by $5.4 Billion as Debt Tops $143.5 Billion
1 articles · Updated · Illinois Policy · May 28
$11.6 billion in Pritzker’s proposed fiscal 2027 budget would go to Illinois’ five state retirement systems, about $5.4 billion below the $17.02 billion actuaries say is needed this year.
That lower payment meets the 1995 “Edgar Ramp” legal requirement but falls well short of the annual contribution actuaries say Illinois must make for 20 years to fully fund the plans and reduce pension debt.
$17.02 billion is up more than $2 billion from COGFA’s 2023 estimate of $14.9 billion, while the gap between statutory and actuarial contributions has widened from $4.1 billion in 2023 to $5.4 billion in the 2027 proposal.
$143.5 billion in unfunded liabilities left the five systems just under 48% funded in fiscal 2025, with Illinois still the only state whose state-managed pension shortfall exceeds $100 billion.
The budget also includes about $7.6 million in taxpayer-funded “pension pickups” for some State Employees Retirement System members, adding to pressure for broader pension changes.
With a $143.5 billion pension hole, is Illinois on an inevitable path to insolvency and massive tax hikes?
Illinois ignores federal pension rules for private companies. Should Washington intervene to fix states’ broken retirement systems?
A 401(k)-style option is popular with some state workers. Why isn't this offered to all to help solve the pension crisis?