HR0487 99TH GENERAL ASSEMBLY

HR0487 LRB099 12388 RPS 35633 r

HOUSE RESOLUTION

WHEREAS, The most recent unfunded liability for the 5 State-funded pension systems is $111 billion and growing, which is the second largest in the nation; and

WHEREAS, Chronic underfunding of the State pension systems is the primary reason for their extreme unfunded liability and the corresponding excessive annual contributions associated with that liability, which are required to stabilize the State's pension plans; and

WHEREAS, Increased pension costs due to underfunding are crowding out other essential State spending, such as education and human services; and

WHEREAS, In FY 2016, approximately $6.7 billion in general revenue is required to go toward the State's pension payments, which is approximately 21% of the entire general revenue available for budgeting purposes; and

WHEREAS, Public Act 94-4 further exacerbated the State's underfunding of its pension systems by taking "pension holidays" in FY 2006 and FY 2007; and

WHEREAS, It is important for the General Assembly to understand the short and long-term impact that pension holidays have on the sustainability of a pension system; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the Teachers' Retirement System of the State of Illinois (TRS), the State Universities Retirement System (SURS), the State Employees' Retirement System of Illinois (SERS), the Judges Retirement System (JRS), and the General Assembly Retirement System (GARS) to request that their respective actuaries analyze the short and long-term effect that the pension holidays contained in Public Act 94-4 had on their systems; and be it further

RESOLVED, That we urge TRS, SURS, SERS, JRS, and GARS to include the fiscal impact of these pension holidays in their annual actuarial valuations.