Illinois Governor Signs Measure Addressing The State’s Public Pension Funding Crisis

CHICAGO—Illinois Gov. Pat Quinn (D) April 14 signed legislation (S.B. 1946) governing public pensions that is expected to save the state $220 billion over the next 35 years through caps on retirement benefits, a longer vesting period, and an increase in the retirement age before state employees can receive full benefits.

Quinn’s action responds to huge public pension liabilities that Illinois has failed to control for more than a decade. A recent report by the Pew Center on the States determined that Illinois faces the largest unfunded pension liability of any state in the country (33 DLR A-6, 2/22/10