IL HB1266

Increases the prescribed funding ratio for 5 State-funded retirement systems (Articles 2, 14, 15, 16, and 18) from 90% to 100% of total actuarial liabilities.

Modifies funding formulas for each affected system to require State contributions sufficient to bring total assets to 100% of actuarial liabilities by end of State fiscal year 2045.

Establishes that beginning in State fiscal year 2046, minimum State contributions maintain the 100% funding ratio instead of the previous 90%.

Changes apply to all State contributions calculated and certified under the affected pension code sections, with corresponding updates to contribution rate calculations using level percentage of payroll methodology.

Takes effect immediately upon becoming law.