PRESS RELEASE

FROM THE ILLINOIS POLICY INSTITUTE

MEDIA CONTACT: Diana Rickert

Diana@IllinoisPolicy.org or (312) 607-4977

 State, local data shows total retirement debt is $203 billion 

Widely publicized "$83 billion" in state pension debt understates total retirement debt faced by Illinois taxpayers

CHICAGO (June 20, 2012) – On the heels of news that Illinois has the worst-funded pensions in the nation, a report released today by the Illinois Policy Institute shows that Illinois' retirement hole is even deeper than lawmakers say.

Much of the debate over reforming Illinois' pensions has focused on the $83 billion owed to state pension funds. But this is not the only type of retirement debt faced by Illinois taxpayers. As highlighted in the Institute's new report, state and local governments in Illinois owe a combined $203 billion for pensions and retiree health insurance. This is equivalent to about $41,000 in retirement debt per Illinois household. 

"State taxpayers are local taxpayers. And Illinois taxpayers aren't on the hook for 'just' the $83 billion that the state owes; they're also facing pension shortfalls borne by local government. The true cost of Illinois' pension and benefit crisis is $203 billion, or roughly $41,000 per household," said Ted Dabrowski, vice president of policy at the Illinois Policy Institute. "Any reform plan being talked about must address this full burden or taxpayers will continue to be saddled with debt."

The Institute's report is titled "$203 billion and Counting: Total debt for state and local retirement benefits in Illinois." It is the first report to put a number to both the state and local retirement, as well as costs associated with retiree health care and pension and benefit bonds on both the state and local levels. 

Here is the breakdown of retirement debt from the report: 

$82.9 billion state pension debt
$15.5 billion state pension obligation bonds
$54.2 billion state retiree health insurance
$38.2 billion local government pension debt
$1.9 billion local government pension and benefit bonds
$10.7 billion local government retiree health insurance
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= $203.4 billion in total retirement debt

The report is available online at: http://illinoispolicy.org/news/article.asp?ArticleSource=4903

FOR INTERVIEWS: Diana Rickert (312) 607-4977 

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The Illinois Policy Institute is a nonpartisan research and education organization dedicated to making our state a beacon for liberty and prosperity for all citizens. As a leading voice for economic liberty and government accountability, the Institute engages policy makers, opinion leaders and citizens on the state and local level by promoting free market principles and liberty-based public policy initiatives for a better Illinois. To learn more about the Institute or review our policy work, please visit: www.illinoispolicy.org.