The State's Credit Fundamentals Continue to Improve
21
Pension Debt
The State's Biggest Financial Challenge
ā Illinois' current pension
payment schedule
follows the plan set forth
Projected State Retirement
Contributions
1994 est. vs 2018 est.
($ millions)
in 1994, 25 years ago.
ā After the original ramp
$20,000
ended in FY2010, the
$18,000
schedule assumed
gradual growth in
$16,000
pension payments.
However, the impact of
$14,000
recessions on asset
values and changes to
the systems' actuarial
assumptions led to a
steeper ramp in
payments even with
the addition of Tier 2.
Appropriations for state
$12,000
2003 Pension
$10,000
Bonds
$8,000
$6,000
$4,000
pensions have grown on
average by 9% ($500
million) annually since
FY2010.
$2,000
$0
FY2020 certified contributions are
$4.2 billion higher than originally
estimated when 90% by FY2045
target date was set in FY1995
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
1994 Projections
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
Actual Payments
2018 Estimates
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