The State of Illinois has accumulated roughly $137 billion in public pension debt at the end of 2019. This is money owed to state employees who have retired as a severance to their public service and work.
The massive amount of debt is an issue because as the underfunded liabilities grow, it will continue to eat up more and more of the state’s operating budget. With more money needed to service debt, this depletes state resources and money it would otherwise spend on public programs and social services. Currently, the total amount of money the state allocates each year to pensions is about a quarter of its budget.
Over the coming months, Prairie State Policy will publish pieces to help better explain how this issue started, the severity of the problem, and what it will take to achieve solvency. Please check in on this content to learn more about Illinois’ Public Pension Debt, one of biggest issue facing the Land of Lincoln.