Illinois legislators discussed state pension liabilities with officials from the state’s five pension systems who are warning that Tier 2 employees will increasingly subsidize the retirement of those in Tier 1. The House Personnel and Pensions Committee met Wednesday to discuss ways of addressing the state’s pension debts. Lawmakers have looked to use House Bill 4098 to allow increased fund transfers each fiscal year to for pensions. The state’s taxpayers are already spending around $10 billion a year on pensions. In 2011, the state created a new tier with fewer benefits for new hires, but issues include an increased reliance on contributions from Tier 2 to fund Tier 1 retirements. Andrew Bodewes of the Teachers’ Retirement System says the issue will continue to get worse if not addressed quickly.
State Rep. Steven Reick says the state needs to do a better job picking and sticking to a plan.
Illinois’ unfunded pension liability is at least $140 billion. The funds are about 42% funded.
Story from Illinois Radio Network
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