Chicago City Wire

Bryce Hill, director of fiscal and economic analysis at the Illinois Policy Institute, expressed concerns about Illinois' pension system on the Prairie State Wire Podcast. He said that the system risks breaking promises to public employees regarding their retirement security.

"Our public sector employees, our public servants, you know, thousands of teachers have been told that this is a guarantee that their pension is a promise and that they don't need to worry about their retirement security," said Hill. "Their union and their representatives at the state level have it covered and that there's going to be a retirement for them when they come time to retire. And right now, if we keep heading down the path that we are heading. That very well might not be the case."

Illinois' pension system has been a topic of concern due to its long-term sustainability issues. According to the Illinois Capitol Group, state budgets are struggling under escalating costs, resulting from decades of underfunding, reliance on a backloaded repayment schedule, and increasing benefit obligations. Analysts have warned that this situation places growing pressure on taxpayers and threatens stability for public employees.

As reported by Ballotpedia and the Illinois Policy Institute, as of fiscal year 2024, Illinois’ five statewide pension systems served more than 239,000 retirees. Overall public pension membership totaled about 1.6 million as of FY2020, with approximately 604,394 active employees contributing to the systems. This highlights the heavy reliance of Illinois’ workforce and retirees on these funds for financial security.

Experts caution that while Illinois’ pension funds are not projected to become insolvent in the near term, the current funding trajectory is unsustainable. A brief from the University of Illinois Institute of Government and Public Affairs (IGPA) noted that Tier 2 benefits enacted in 2011 might eventually weaken retention while long-standing structural flaws persist. IGPA warns that these pressures contribute to long-term fiscal risks if reforms are not enacted.

Hill is Director of Fiscal and Economic Analysis at the Illinois Policy Institute, where he focuses on state budgets, tax policy, and pensions. He holds a B.A. in economics and political science from Capital University and previously worked as a research assistant at The Buckeye Institute. His work emphasizes fiscal sustainability and government accountability.