Illinois plans to issue $3.5 billion in pension obligation bonds to finance its 2010 contributions to its five statewide retirement systems, said Elizabeth Austin, spokeswoman for the Illinois Office of Management and Budget.
The Illinois General Assembly authorized the issuance of the bonds in the state budget that was signed by Gov. Pat Quinn on Wednesday.
The $27.2 billion Illinois Teachers’ Retirement System, Springfield, will receive $2.1 billion of the bond proceeds; the $11 billion Illinois State Universities Retirement System, Champaign, $702.5 million; and the $9.2 billion Illinois State Board of Investment, Chicago., $812.9 million. (A separate $139 million will come from non-bond funding in a separate legislative appropriation.)
The state board oversees the investments of the Illinois State Employees’ Retirement System, the Illinois Judges Retirement System and the Illinois General Assembly Retirement System, which will receive in the bond proceeds, respectively, $723.7 million, $10.4 million and $78.8 million, Mr. Blair said.
The proceeds to each of the systems meet their certified actuarial contribution for 2010, said Timothy B. Blair, acting executive secretary of Illinois State Employees’ Retirement System, Springfield.
Mr. Blair believes the timing of the sale of the bonds will depend on market conditions.
Information on when the bonds will be issued and which investment banks will manage the transaction was unavailable from the state OMB.
Officials of the teachers’ system, Illinois SURS and ISBI couldn’t be reached for comment.
In 2003, the state issued $10 billion in pension obligation bonds for the state retirement systems