Illinois Legislators Approve $1 Billion More for Pension Buyouts

The Illinois Senate on Tuesday approved a bipartisan proposal to authorize selling $1 billion of debt to pay for pension buyouts in a bid to reduce the worst-rated state’s massive unfunded liability for its retirement systems.

The bill, which the House passed last month, would allow additional borrowing to extend a buyout option for many employees of the state, its universities and school systems. The debt would be on top of a previous authorization from 2018 to issue $1 billion of so-called pension-obligation-acceleration debt, most of which has been sold.

The legislation now heads to Governor J.B. Pritzker, a ...