HB5851 Summary

• Amends the Budget Stabilization Act to transfer specified amounts from the General Revenue Fund to the Pension Stabilization Fund for fiscal years 2030-2040: $175 million in FY2030, $250 million in FY2031-2033, and $750 million in FY2034-2040.

• Modifies the Illinois Pension Code funding formula for all 5 state-funded retirement systems, changing the target funding level from 90% to 100% of total actuarial liabilities by the end of fiscal year 2048.

• Establishes three distinct contribution periods: FY2026-2034 contributions calculated to reach 100% funding by 2048 using projected unit credit method; FY2035-2048 contributions include adjustments for unfunded liability changes; FY2049 and beyond use entry age normal actuarial cost method.

• Requires pension boards to disregard future Budget Stabilization Act payments when calculating minimum state contributions, and specifies that such payments do not reduce required state contributions until systems reach 90% funding ratio.

• Repeals a provision requiring the Commission on Government Forecasting and Accountability to determine whether certain pension funding goals are appropriate.