Pension funding for the fiscal year 2011 payment is in serious jeopardy. IFT members are asked to contact their State Senator to urge them to support Senate Bill 3514 in the upcoming Veto session that begins November 15 and concludes December 1.
Another consequence of the state’s failure to address the revenue crisis in Illinois is once again being played out with the payment to Illinois pension systems. For years the state has shortchanged Illinois pension systems in order to balance the books. Now, however the financial well being of these systems are dependent upon this payment being made. TRS estimates that if the fiscal year 2011 payment is not made the funded ratio will decline from 43% to 40% and require additional assets to be sold in order to make payments to annuitants.
Legislation to authorize the issuance of Pension Obligation Bonds for the fiscal year 2011 pension payment remains in the Senate. Senate Bill 3514 allows the state to issue over $3 billion in bonds in order to pay the state’s contribution to the state funded pension systems. The legislation was passed by the House of Representatives in May but has not been addressed by the Senate. In order for the bill to pass it must receive 36 votes in the Senate.