Illinois will have to pay $1 billion more to its pension funds because of the emergence of smaller employee contributions, Pensions & Investments reports. The 19 percent increase in obligations, to $5.9 billion from $4.9 billion in fiscal 2012, had not been anticipated. Chicago-based Illinois State Board of Investment’s executive director William Atwood attributed increase to the change to the systems.
The Teachers’ Retirement System of the State of Illinois, the Illinois Municipal Retirement Fund, the State Universities Retirement System of Illinois and the Illinois State Board of Investment collectively hold more than $83 billion in assets. The state’s retirement system has assets to pay 45 percent of promised benefits, whereas the state law requires the system to reach a 90 percent-funded ratio by 2045.
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