(The Center Square) – Illinois’ pension debt compared to personal income is the second worst in the nation.
Fitch Ratings reviewed pension funds for public employee retirees from every state.
“In aggregate, states had $924 billion in Fitch-adjusted [net pension liabilities] as of state fiscal 2023 audits,” the report said. “This was up 21.2% from the $762 billion reported last year, as post-pandemic asset values surged, but it remained below the $1 trillion level reached in fiscal 2021.”
The report found Illinois’ unfunded pension liability, when including other post employment benefits, is $206.5 billion.
“The median ratio of direct debt to personal income measured only 1.8% in fiscal 2023, below the 2% level in fiscal 2022,” the report said. “Since fiscal 2016, when the median was 2.3% of personal income, the burden of state direct debt has been flat to declining.”
The ratings agency’s recent report has the long-term liabilities for Illinois making up 22.8% of the state’s personal income, the second worst in the country behind Connecticut.