Friday, November 28, 2014

Another Reason Why the State's Unfunded Pension Liability Continues to Grow

From the TRS Report, November 2014:

“Every Year the TRS Board is required to certify under the current statutory funding what the state’s funding amount will be for the next fiscal year. Friday, October 31, the board voted to inform the state that under the law Illinois must pay TRS $3,742,702,194 for FY 2016.  

“We also told the state that based on generally accepted actuarial standards, a minimum state funding of $4,365,257,249 would have been required, or some $622,555,055 more. And if the state was required to give enough to keep the projected unfunded liability from growing during the fiscal year, an FY 2016 amount of $5,338,280,276 would have been required, which is a full $1,595,578,082 more than what the 1995 funding plan calls for in the next fiscal year.

“When a legislator tells you with some conviction that the pension funds are being paid what is required, what he or she means is what is required by the law, and not what is necessary to give us any movement at all toward full funding…”

For the complete report, Click Here.

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