Illinois' five state retirement systems would receive more than $6 billion in state contributions combined in the next fiscal year, beginning July 1, up 4.3% from the current fiscal year, according to a budget proposal released Wednesday by Gov. Pat Quinn.
Under the proposal, the Illinois Teachers' Retirement System, Springfield, would get $3.4 billion; Illinois State Universities Retirement System, Champaign, $1.5 billion; Illinois State Employees' Retirement System, Springfield, $1.1 billion; Illinois Judges' Retirement System Springfield, $133.9 million; and Illinois General Assembly Retirement System, Springfield, $15.8 million.
The combined funding ratio of the five systems was 41% as of June 30, 2013, according to the budget proposal. Broken down by system on a fair-market value basis, the $42.8 billion TRS was 42.5% funded; $15.9 billion SURS, 43.7%; $12.4 billion SERS, 35.7%; $643 million JRS, 29.8%; and $54 million GARS, 17%.
In all, the five systems had a combined $67.9 billion in assets and $165.4 billion in liabilities as of June 30, according to the budget proposal.
Pension reforms the state enacted in 2010 and 2013 put Illinois on a course to “eliminating the pension debt over the next 30 years,” Mr. Quinn said Wednesday in his budget address before a combined special session of the state Legislature.
“Funding the five state retirement systems is one of Illinois government's greatest financial challenges,” according to the proposed budget. “For decades, Illinois' unfunded pension liability has been significantly greater than all of the state's bonded debt combined.”