Illinois Gets $1 Billion Surprise as Pension Demands Jump
This article is for subscribers only.
Illinois will owe $1 billion more to its pension funds next fiscal year as smaller employee contributions kick in, according to projections released this week by state actuaries.
The 19 percent increase in obligations, to $5.9 billion from $4.9 billion in fiscal 2012, wasn’t anticipated by budget officials when they presented the current plan in February. The higher cost to Illinois’s five retirement funds risks deepening a budget hole as lawmakers consider tax breaks for businesses threatening to leave the state.