Illinois Governor Bruce Rauner this week signed legislation sponsored by state Sen. Michael Connelly, R-Wheaton, that requires the five state-funded pension systems to conduct an actuarial analysis of the funds every three years (instead of every five years, as in current law).
As part of an effort to get a better grasp on the state’s true pension indebtedness, the Connelly-sponsored measure was signed Aug. 3, by the governor.
“I believe Gov. Rauner understands the gravity of the state’s fiscal condition and our need to gain better control over our pension systems,” said Connelly. “I am grateful for his quick action on this important legislation.”
“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. This bill will help taxpayers understand our true fiscal situation.”
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.
In May House Bill 422 passed the Senate with a 54-0-0 vote. It previously passed the House of Representatives on March 12.