Dissecting Illinois’ Public Pension Issue: Part I
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.
Dissecting Illinois’ Public Pension Problem Part II: Modeling Pensions
Pensions are money owed to former public employees as severance to their public service and work. Recipients of these benefits in Illinois include teachers, police, firefighters, state employees, judges, and more. Recipients start collecting this benefit at retirement.
Dissecting Illinois’ Pension Problem Part III: Understanding Tiers
Public employees are separated into two tiers, depending on when they began employment, and each tier contains a different vesting structure for their pension. The two tiers are simply referred to as Tier I and Tier II.
Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 1990s)
The State of Illinois’ growing underfunded liabilities was the folly of many and not subjected to a single action. It was the compounded effect of many various decisions made by different individuals over decades. Part IV in our Illinois Pension series documents how the problem started and perpetuated into the issue it is today.
Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 2000s)
The State of Illinois’ growing underfunded liabilities was the folly of many and not subjected to a single action. It was the compounded effect of many various decisions made by different individuals over decades. Part IV in our Illinois Pension series documents how the problem started and perpetuated into the issue it is today.
Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 2010s)
This legislation created a new tier of benefits for public employees hired after January 1, 2011 in lieu of the rising liabilities and was signed April 4, 2010 by Governor Quinn. Tier 1 membership refers to public employees who were hired before January 1, 2011, and Tier 2 members are those who were hired after. The intention was to slow the rising liabilities in the long-run as older employees retired as newer employees were hired. Most importantly, the changes to the Pension Code do not alter pension benefits for Tier 1 employees and changes the way benefits are calculated for those hired after Jan. 1, 2011. Notable changes include:
Mid-year update on the State Pension System
Illinois pensions remain significantly underfunded, but the trajectory has improved over the last several years due to full statutory payments, supplemental contributions, and strong investment markets.
Prairie State Policy 