IL HR0752

State retirement systems hold $111.2 billion in unfunded pension liabilities as of June 30, 2014, with combined unfunded liabilities increasing by $86.2 billion between Fiscal Year 2001 and 2014.

State-funded retirement system contributions increased from $1.33 billion in Fiscal Year 2001 to $7.6 billion in Fiscal Year 2016, crowding out spending on other essential state services.

Illinois Supreme Court ruled that pension benefits are constitutionally protected contractual rights that cannot be diminished, but identified "consideration" (mutual agreement) as a legal framework for benefit adjustments.

Urges the Speaker of the House and House Personnel and Pensions Committee Chairperson to hold hearings on implementing a voluntary lump sum exchange option for state retirement system participants.

Committee hearings should invite interested parties and stakeholders to examine potential outcomes and barriers to establishing a lump sum pension exchange option within state-funded retirement systems.