Illinois has one of the most severely mismanaged public pension systems of any state, with a total shortfall estimated at $111 billion. Not only does the huge imbalance put public workers’ benefits in jeopardy, but as more and more are qualifying to retire and draw their benefits, the situation is also undermining the finances of the whole state.
Public employees’ groups have complained in recent years that the pension system’s troubles have been fueled by the state’s failure to make big enough contributions to keep it in good shape. For two decades, the Illinois Legislature has worked with a statutory funding schedule that gives an appearance of order while allowing debt to snowball off the balance sheet.
The state’s Democratic leadership wrestled with the pension problems for several years but produced few meaningful results. In a state dominated by the Democratic Party that is home to a Democratic president, the issue was particularly vexing because public sector unions were otherwise solidly lined up behind Democrats.
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