Illinois Gov. J.B. Pritzker has signed legislation cementing a Cook County Forest Preserve District pension funding overhaul that rescues the fund from looming insolvency.
Lawmakers approved
Voters made the pension rescue possible by passing a measure
The additional funding now permitted by state law puts the pension fund on a path toward a full funded ratio in 30 years beginning in 2024 by requiring actuarially based contributions.
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Until now, the Forest Preserve district's employer contributions, like those of many Illinois public pension funds, was tied to a multiplier of employee contributions that proved lower than actuarial requirements. It had been paying about $9.7 million a year.
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Cook County itself raised its sales tax in 2015 to generate additional money for a supplemental pension contribution to its own pension system and for infrastructure. The additional pension contributions so far total about $2.3 billion and have been made under an intergovernmental agreement because the county is still in negotiations for legislation that would cement the supplemental funding into the pension code.
The infusion of additional payments lifted the county pension fund's funded ratio to 67.2% in 2021 from 56.7% in 2016 when they began. Unfunded liabilities have fallen by more than $1 billion and totaled $6.3 billion in 2021, down from $6.7 billion in 2020 and $7 billion in 2019.
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In addition to pumping money into its pension system, the new revenues will help pay for the acquisition and protection of open lands and trails, expand the district's restoration work to improve the ecological health of the preserves and increase programs and events for the public and schools.
The district also has plans to improve energy efficiency, improve accessibility, and address deferred capital needs at the Brookfield Zoo and Chicago Botanic Garden.
The district provides the land that houses the zoo and the garden and nearly one-fifth of its annual budget is dedicated to the operation of the zoo and garden.
Large unfunded pension liabilitieswith low funded ratios weigh on Chicago, many local governments statewide, and the state. Chicago's four pension funds have moved to an actuarially-based contribution that put them on a path to a 90% funded ratio in the 2050s and
Suburban and downstate public safety funds are on a path to 90% funding in 2040 with collective unfunded liabilities of $13 billion and an average funded ratio about 44% to 45%. General suburban and downstate employees participate in the well-funded Illinois Municipal Retirement Fund.