IL SB4166

Requires Illinois to make annual State pension contributions on the first day of each fiscal year from FY 2027 through FY 2045 for the 5 State-funded retirement systems (General Assembly, State Employees', State Universities, Teachers', and Judges')

Authorizes up to $6 billion in Pension Obligation Bonds between FY 2027-2031, with proceeds used exclusively to reduce unfunded liability principal—not for normal costs or replacing required contributions

Replaces the backloaded "Pension Ramp" payment schedule (Public Act 88-593) with level-dollar amortization beginning in FY 2032, requiring consistent annual payments through FY 2045

Requires State Actuary certification before bond issuance confirming the bonds will reduce unfunded liabilities and improve funded ratios

Aims to bring all 5 pension systems to at least 90% funded by end of FY 2045, with projected savings of approximately $40 billion compared to the current payment schedule