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Report: 5 state pension funds owed $100.5B

Published: Wednesday, Jan. 8, 2014 2:00 p.m. CDT

SPRINGFIELD (AP) — A state report shows the amount of money taxpayers owe five state pension plans hit $100.5 billion on June 30. But that's $3 billion less when not using a counting method adopted five years ago that made the pension picture brighter.

Auditor General William Holland released a report Wednesday that estimates the total retirement-fund debt based on a process called "smoothing" — considering gains and losses during the past five years.

Without smoothing and instead considering current market value of assets, the total unfunded liability is $97 billion.

Democratic state Rep. Elaine Nekritz of Northbrook is a House pension leader. She notes smoothing brightens the picture in down times but encourages lawmakers not to abandon it in good times.

Lawmakers adopted a plan in December to reduce the pension debt.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
 

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