Statehouse
7:42 am
Thu January 9, 2014

State Pension Shortfall At $100.5 Billion

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