News

Unfunded Pension Liability Grows to $100.5 Billion

Unfunded Pension Liability Grows to $100.5 Billion

Photo: clipart.com

A new audit of Illinois pensions shows their unfunded liability has crossed into new territory. It’s no longer almost or about – it’s more than $100 billion.

The auditor general’s report released Wednesday indicates the five systems’ liability grew 6.3 percent – $5.9 billion – in the fiscal year which ended June 30, 2013. The new total is $100.5 billion.

It’s not a surprise to one of the legislature’s main pension negotiators, State Rep. Elaine Nekritz (D-Northbrook), who says the calculations have been “smoothed” for the last five years.

“You take an average of the value of those assets over five years rather than at a point in time,” Nekritz says. “The reason you do that is when the stock market dropped – what was it, 25, 30 percent? – that was a very significant hit (which) I didn’t think really reflected the long-term value the assets that were held in the pension funds.”

Recent Headlines

46 mins ago in Local

Court Upholds TV Pitchman Kevin Trudeau’s 10-Year Sentence

Fresh
wtax 011015

An appeals court in Chicago has upheld a 10-year prison term for best-selling author Kevin Trudeau.

52 mins ago in Local

Hung Jury Declared in Trial of Former Illinois Prosecutor

Fresh
gavel2

Judge Bob Hardwick declared a mistrial Friday evening in the trial of Curtis Lovelace.

56 mins ago in Local

Amtrak, Illinois Reach Deal to Maintain Instate Service

Fresh
amtrak

The deal announced Friday will maintain service through the end of the fiscal year on June 30 at a cost of $38.3 million to the state. The department paid $42 million the previous fiscal year.

12 hours ago in Local

State Museum to Reopen with Governor’s Amendatory Veto

Illinois State Museum

Rauner has amendatorily vetoed a bill lawmakers approved a few months ago that would reopen the museum and all its satellite locations.

12 hours ago in Local

Woman Convicted of Involuntary Manslaughter of Child Sentenced

Cammie Kelly

Cammie Kelly is going to prison for four years.