Connelly bill to require closer scrutiny of pension funds

SPRINGFIELD, IL – As part of an effort to get a better grasp on the state’s true pension indebtedness, State Sen. Michael Connelly (R-Wheaton) passed legislation on May 19 to help taxpayers understand the true fiscal situation.

“Illinois needs to take steps toward getting a truer sense of the full long-term pension liability this state faces,” Connelly said. “Doing a full actuarial review every three years instead of five, Illinois will be better prepared when making funding choices on our indebtedness.”

Connelly’s House Bill 422, calls for the state’s five pension systems to undergo a more frequent periodic review of actuarial numbers. The legislation would require the state’s five pension systems to move to a three-year schedule for actuarial reviews.

The State Universities’ Retirement System, State Employees’ Retirement System, Judges Retirement System, and the General Assembly Retirement System preform a statutorily-required review of their systems to examine the mortality, retirement, disability, separation, interest and salary rates. The Teacher’s Retirement System has already adopted the three-year schedule.

House Bill 422 passed the Senate with a 54-0-0 vote. It previously passed the House of Representatives on March 12 and now awaits the Governor’s signature.