Illinois Gov. J.B. Pritzker said Wednesday the state plans to contribute an additional $500 million to the state's retirement systems, in a budget address for fiscal year 2023 before the state's General Assembly.
The additional amount, which would be contributed directly to the state's Pension Stabilization Fund, is pending approval by the state's General Assembly.
If approved, "this will be the first time since the beginning of 1994 … that we will reduce our pension debt by more than our required contribution," Mr. Pritzker said in prepared remarks posted on his website. The fiscal year begins July 1.
Mr. Pritzker cited higher-than-expected state revenues from corporate taxes, cannabis, online sales taxes and income as reasons the state is able to make the additional contribution to the state retirement systems.
The state's total required contribution to its five pension funds in fiscal year 2023 is $10.67 billion, according to the funds' most recent actuarial valuations, published in December.
The Pension Stabilization Fund was created in 2006 to make additional contributions to the five state retirement systems when state general fund revenues exceed certain thresholds each year.
According to the 2021 actuarial valuation reports, the funding ratios for the five state retirement systems range from 19.3% to 43.8%.
As of June 30, 2020, the state's aggregate net pension liabilities reported under Government Accounting Standards Board rules totaled $154 billion.
