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Illinois on hook for additional $421 million TRS pension payment next year

Kevin HoffmanReboot Illinois

Aug 28, 2016

The decision by the state’s largest pension fund to lower the assumed rate of return on investments will cost Illinois taxpayers $421 million in the next fiscal year.

In a 10-0 vote, the Teachers’ Retirement System on Friday approved decreasing its investment return assumption from 7.5 percent to 7.0 percent, despite warnings from Gov. Bruce Rauner that such a move would have a “devastating impact” on education and social services and could lead to higher taxes.

TRS, which serves a little more than 400,000 members, had $62.7 billion in unfunded pension liabilities and a funded ratio of 42 percent as of…

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