Public Pensions are Bankrupting Illinois

$100 billion in Unfunded Pension Liability; $7,770 per Illinois Resident!

Contact Your Legislator Today to Support SB 1 by Submitting Your Information Below

Illinois has the worst-funded pension system in the United States with assets covering only 38% of liabilities.*  Those assets are not enough to pay the benefits of current retirees let alone those of current employees who are contributing to the funds through their paycheck every day.  Furthermore, by the year 2045, the state will be required to dedicate 50% of its tax revenue to pay for public pensions, drowning out funding for education, health care, and safety. Reforms need to be implanted for current state employees to reduce the funds’ fiscal strain on the state’s budget and provide long-term stability to guarantee that funding is available for future retirees.  Speaker Madigan and Republican Leader Tom Cross have come together to do just that by jointly supporting SB 1 as amended.  

Major Provisions of SB1 as amended in the House:

• New method for calculating the annual COLA, which is the major cost drivers for the pension systems.  The cap of future COLA increases would be at $1,000 every year they worked. For example, if a retiree worked 30 years, the amount would be $30,000; their COLA would be 3 percent of that amount, or $900, and would accumulate each year,
• Establish a pensionable salary cap for Tier I employee at $109,971,
• Increase the retirement age on a graduated scale based on current age, 
• Increase employee contributions by 2%,
• Funding schedule to reach 100% funding in 30 years,
• Prohibit the use of pension funds to subsidize retiree healthcare,
• Eliminate the subject of pensions for collective bargaining,
• Provides a funding guarantee by allowing the pensions systems the right to take mandamus action if legislature fails to follow new funding schedule,

Without these reforms, Illinois will never return to the Path of Prosperity!

Contact Your Legislator Today to Urge Public Pension Reform!  Total unfunded pension liabilities = $100 billion or $7,770 per Illinois Resident!