Illinois Burgeoning Unfunded Liability, More Than a Pension Problem!

The three primary sources of contributions which finance Illinois state retirement systems are employee contributions, employer (the state) contributions and investment returns. According to the most recent state comparison of unfunded pension liabilities by Wilshire Research Associates, at $40.7 billion, Illinois has the worst unfunded pension liability in the nation. Moreover, when compared to Illinois FY06 total general revenue fund of $28.65 billion, Illinois $40.7 billion dollar unfunded liability represents 142% of FY2006 total general fund. This Report explains the source of Illinois immense unfunded liability, and how it relates to the state's budget and overall fiscal position.