A Chicago Tribune news report said the only way the state funds avoided the same fate last fiscal year was because lawmakers eventually approved a plan to borrow $3.4 billion to make its pension payments. The state legislature has recessed this year without approving a pension funding plan and has rebuffed efforts by Governor Pat Quinn to, once again, borrow for that purpose, the newspaper said.
Until there is some legislative movement on the issue, according to the Tribune, plans by the five funds include the possible sale of:
- $1.2 billion in assets by the Illinois State Universities Retirement System.. “I can’t reiterate enough how important it is for the state to make its contribution,” said William Mabe, executive director of the university system.
- $3 billion in assets by the Illinois Teachers’ Retirement System. The teachers fund is already selling assets to meet its monthly benefits obligations, as it did last year, said Dave Urbanek, a spokesman for the system. Last fiscal year it sold $1.3 billion in assets for this purpose.
- $960 million in assets by the Illinois State Board of Investment, which manages the assets of the Illinois State Employees’ Retirement System, the Illinois Judges’ Retirement System and the Illinois General Assembly Retirement System.