CHICAGO (AP) - Newly released data shows recent pension reform legislation will reduce the massive Illinois pension debt more than originally projected.
Senate Republican Leader Christine Radogno of Lemont calls the latest numbers crunch performed by four of the state’s public pension systems “good news.”
Information was detailed in a statement by Gov. Pat Quinn’s office for an upcoming sale of general obligation bonds.
Actuaries project that the state’s unfunded liability will be reduced by $24 billion over 30 years, $3 billion more than expected. The state’s pension contribution also will be lower. That’s due largely to better than expected returns on investments.
The law cuts benefits and raises the retirement age for younger workers, but also reduces employees’ contributions and includes a state funding guarantee. Unions are challenging its constitutionality.
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