Institutional Investors

Pension funding woes grow in Illinois


While public pension plans in New York and California are coming to terms with unfunded state government obligations, legislators in Illinois are now also in the spotlight – facing a potential $6.6 billion bill in making the required contributions to one of the state’s largest pensions, the Teachers’ Retirement System.

Officials at the $30 billion pension fund said that, if the state does not make its $2.4 billion annual contribution to the plan, taxpayers will owe $6.6 billion over 34 years due to the additional costs of borrowing and not to mention lost investment opportunity for the plan.