COGFA Releases FY 2025 Pension Update

The Commission on Government Forecasting and Accountability (COGFA) provided an update on the performance of the State’s five pension systems in FY 2025. As of June 30, 2025, all five state retirement systems had actuarial (five-year smoothed) assets of $130.3B and unfunded liabilities of $144.6B, for a combined funded ratio of 47.4%. Assets are up 6.8%, unfunded liabilities are up 0.2% over FY 2024, and the actuarial funded ratio of the state pension system increased by 1.6% since the end of FY 2024.

The Teachers Retirement System (TRS) had assets of $76.05B and unfunded liabilities of $83.07B for a funded ratio of 47.8%. TRS is the largest of the state retirement systems and accounts for 57.5% of the total unfunded liabilities across all state pensions. The State Employees’ Retirement System (SERS) had assets of $27.38B and unfunded liabilities of $30.97B for a funded ratio of 46.9%. The State Universities Retirement System (SURS) had assets of $25.38B and unfunded liabilities of $28.55B for a funded ratio of 47.1%. The significantly smaller Judges Retirement System (JRS) had assets of $1.46B and unfunded liabilities of $1.72B for a funded ratio of 46.0%. The General Assembly Retirement System (GARS), the smallest of the state pension funds, had assets of $96.2M and unfunded liabilities of $267.1M for a funded ratio of 26.5%.

Actuarial unfunded liabilities remained basically flat from FY 2024, increasing by a minimal 0.2% (or $282.6M). FY 2025 was one of the best performing years for actuarial unfunded liability increase since the state’s pension funding ramp began in FY 1996. FY 2025 was the sixth best performing year since the ramp began, with only four years when unfunded liability decreased and one other year when unfunded liability increased by an even lower amount. The largest contributors to unfunded liability growth in FY 2025 were changes in assumptions ($982M) and higher-than-assumed salary increases ($1.068B). State contributions below the actuarially determined contribution (ADC) increased unfunded liability by $274M and demographic and other changes increased unfunded liability by $43M.

These liability increases were almost entirely offset by a $2.005B actuarial decrease in unfunded liability due to investment returns above the assumed rate and a slight $79M decrease in unfunded liability due to pension buyout programs.

To remain on track for the state’s long-standing 90% funding goal in FY 2045, COGFA projects a required pension contribution in FY 2026 of $11.718B to all five retirement systems. Broken down by system, the state would contribute $6.495B to TRS, $2.069B to SURS, $1.880B to SERS, $26.5M to GARS, and $151.9M to JRS. The statutorily authorized FY 2026 contribution is an increase of 4.03% (or $454M) over the state’s $11.264B appropriation in FY 2025. Though subject to change based on conditions at the time, COGFA’s projected FY 2027 contribution would be $11.937B, an increase of $218.8M (or 1.9%) over the FY 2026 contribution.

Gov. Pritzker Signs Immigration Enforcement Legislation

On December 9, Gov. JB Pritzker signed comprehensive immigration enforcement legislation (HB 1312) passed in veto session into law. The bill contains various provisions to protect Illinois residents from recent federal immigration crackdowns across the state, particularly focusing on the common immigration touchpoint locations of hospitals, licensed daycare centers, public institutions of higher education and state courthouses. The legislation took effect immediately upon being signed by the governor.

Important Upcoming Dates – Statewide

February 6 – Bill Introduction Deadline

February 18 – Governor’s State of the State and Budget Address

March 13 – Initial Chamber Committee Deadline (Senate)

March 27 – Initial Chamber Committee Deadline (House)

April 17 – Initial Chamber Third Reading Deadline

May 8 – Opposite Chamber Committee Deadline

May 22 – Opposite Chamber Third Reading Deadline

May 31 – Adjournment

In the News

Illinois Democrats applaud as GOP-led Indiana Senate rebuffs President Trump’s push for new redistricting map – Chicago Tribune, December 11, 2025

The heavily Republican-led Indiana Senate on Thursday rejected a mid-decade redistricting plan aimed at giving the state two additional GOP U.S. House members in a sharp rebuke to President Donald Trump’s pressure to try to help maintain a congressional majority in next year’s midterm elections.

Sen. Emil Jones III to enter deferred prosecution agreement after bribery mistrial – Capitol News Illinois, December 11, 2025

January retrial canceled in deal that would see charges dropped in a year.

Duckworth confronts defense officials over Guard deployment in Chicago – Crain’s Chicago Business, December 11, 2025

Sen. Tammy Duckworth today confronted Department of Defense officials at a hearing over National Guard use in U.S. cities, telling them federal forces have been deployed “under false pretenses.”

Why there’s little enthusiasm for an Illinois congressional remap – Crain’s Chicago Business, December 11, 2025

Illinois lawmakers will be keeping a close eye on their counterparts in Indiana today, as Hoosier state senators decide whether to redraw their congressional maps.

Illinois National Guard still federalized as President Trump extends order, despite troops sitting idle – Chicago Tribune, December 10, 2025

Three hundred Illinois National Guard troops remain under Republican President Donald Trump’s control roughly a week after an initial 60-day federal activation order expired, continuing a clash over his unprecedented decision to seize authority over state soldiers who have spent almost their entire time confined to a base in northern Illinois and performing no operational missions.

Illinois AFL-CIO withholds primary endorsements for Senate, comptroller and most open-seat races for Congress – Chicago Tribune, December 9, 2025

The Illinois AFL-CIO, the umbrella organization representing most of the state’s organized labor, opted Tuesday not to make endorsements in several critical races for the March 17 primary, including competitive open-seat contests for the Democratic nomination for U.S. Senate, state comptroller, and some congressional slots.

Gov. Pritzker Signs Laws To Better Protect Immigrants, Sue Federal Agents After Midway Blitz – Block Club Chicago, December 9, 2025

The new laws won’t stop federal immigration enforcement, but they will give the state “new protective tools” and symbolize resistance “against those terrorizing our communities and our state,” Gov. JB Pritzker said.

Calumet City aldermen continue to question Mayor Thaddeus Jones’ expenses, call for change – Chicago Tribune, December 9, 2025

Calumet City aldermen say they will seek reimbursement of several payments to people and businesses after receiving more information on city spending, including via Mayor Thaddeus Jones’ municipal credit card.

Governor signs bill allowing civil action against federal immigration officers, expands protections at hospitals, daycares – The Daily Line, December 10, 2025

House Bill 1312 allows Illinois residents to bring civil lawsuits against any law enforcement officer who violates the United States or Illinois Constitutions. This provision would include federal officers, such as the U.S. Immigration and Customs Enforcement agents and Customs and Border Protection agents who have been conducting raids in Illinois since September.

Ex-House Speaker leader Madigan latest Illinois Democrat to pitch Trump for clemency – Chicago Tribune, December 9, 2025

Madigan, who was convicted in February on a range of corruption counts, recently filed a clemency petition with the Office of the Pardon Attorney that is still pending as of Tuesday, according to information on the office’s website.

Report finds pay disparities in Illinois remain despite pay transparency laws – The Daily Line, December 9, 2025

A report released Monday found gender and racial pay gaps have persisted in Illinois despite efforts to narrow them.

Illinois’ unfunded pension liability at more than $144 billion – The Daily Line, December 9, 2025

Illinois saw a small decrease in its unfunded pension liability in the 2025 fiscal year, but the system continues to suffer from decades of underfunding, according to a report from the Commission on Government Forecasting and Accountability (COGFA).

Illinois Farm Bureau delegates reject president’s bid for 2nd term – WGLT, December 8, 2025

Illinois Farm Bureau delegates have rejected a new term for Illinois Farm Bureau [IFB] President Brian Duncan.

Public transit riders discuss service frequency, disability services at budget hearing – The Daily Line, December 8, 2025

Transit riders shared concerns and ideas for the Chicago-area transit agencies as the Regional Transportation Authority (RTA) board mulls the agencies’ budget proposals.

IL Sec of State criticizes TSA fee option, extends REAL ID facility lease – The Center Square, December 5, 2025

Illinois Secretary of State Alexi Giannoulias is criticizing the federal government’s plan to offer travelers without proper identification the option of paying a fee. The Transportation Security Administration announced Monday that, starting Feb. 1, 2026, it will refer all passengers who do not present an acceptable form of ID the option of paying a $45 fee to use an alternative identity verification system.

Chicago’s bond rating likely to drop to a notch above junk, no matter how and when budget stalemate ends – Chicago Sun Times, December 11, 2025

Another drop in Chicago’s bond rating may not mean much to taxpayers now, but it will mean plenty to their children and grandchildren. It would make city borrowing costlier, and could impede the city’s ability to borrow at a time when the it needs to rebuild aging infrastructure, grapple with climate change and replace shrinking federal and state funding.

In snowy weather, CTA bus riders must become mountaineers – Chicago Sun Times, December 11, 2025

Despite the CTA, Streets and San, CDOT, and nearby businesses all being responsible for cleaning snow from Chicago bus stops, the snow still manages to pile up, creating hazards for commuters.

Council opposition wins Round 1 in budget battle with Mayor Johnson – Chicago Sun Times, December 10, 2025

Council members who oppose Brandon Johnson’s proposed budget and its corporate head tax showed Wednesday that they have more than the 26 votes needed to pass their alternate spending plan, which steers clear of short-term financial fixes that threaten Chicago’s beleaguered bond rating.

New Chicago teen curfew plan would require 12-hour notice by police – Chicago Tribune, December 10, 2025

A downtown alderman aims to relaunch the Chicago teen curfew debate with what he described as a new and improved version of his previous ordinance that was vetoed by Mayor Brandon Johnson.

Barack Obama visits Chicago to check on his center’s progress — and makes a surprise school visit – Chicago Tribune, December 10, 2025

With his namesake center due to open in just over six months, former President Barack Obama is in Chicago this week to see how construction is coming along — plus make a few other stops to promote and preview the multimillion-dollar endeavor, including a surprise visit to a South Side school.

Revised head tax unveiled by mayor, but opponents still plan votes on alternative budget proposals – The Daily Line, December 10, 2025

The new version of the controversial proposal was released as the mayor and City Council try to break a stalemate and pass a city budget by Dec. 30 to avert a government shutdown. But opponents of the head tax were not swayed and vowed to push ahead with an alternative budget proposal, saying they were confident they still had a coalition of at least 26 people that would support a plan from them.

Chicago dealmaking primed for 2026 uptick as tariff woes ease – Crain’s Chicago Business, December 10, 2025

Despite the overall weakness, deal activity in the Chicago area outpaced the national environment. And market watchers said companies are preparing to put themselves on the market and buyers are kicking the tires on potential targets, signs the market will heat up in 2026.

Budget stalemate continues as mayor, moderate alderpeople hold firm on dueling proposals – The Daily Line, December 9, 2025

Following a meeting this past weekend between alderpeople pushing a number of alternative strategies to balance the city’s 2026 budget and Mayor Brandon Johnson’s finance leadership, the mayor said Monday morning he had sent a letter to the full City Council to update them on budget negotiations and discussed his desire to avoid a government shutdown by failing to pass a budget by the end of the year.

Zoning committee to consider measure allowing ADUs in single-family zones in nearly 20 wards, DePaul athletic facility, new mixed-use developments – The Daily Line, December 9, 2025

The City Council zoning committee on Tuesday will consider a measure to allow attic and basement conversion units and coach houses in numerous single-family zoning districts across the city and multiple projects to bring scores of new housing units.

Housing committee approves measure to place independent Chicago Housing Trust under city department – The Daily Line, December 8, 2025

The City Council Committee on Housing and Real Estate last Wednesday approved a restructuring measure to bring the Chicago Housing Trust under formal city control and approved a land deal for a memorial to police torture victims.

Editorial: Mayor Brandon Johnson’s game of budgetary chicken puts Chicago’s future at risk – Chicago Tribune, December 7, 2025

The mayor’s team dismissed virtually all of the suggestions the majority of the council made and came back with almost no alternative proposals of their own. And the mayor’s cheering section, the Chicago Teachers Union, decided, appallingly, to engage in the politics of personal destruction naming “The Alders willing to shutdown our city,” suggesting they will provide backup if Johnson digs in sufficiently for Chicago’s own version of a federal government shutdown. Be very afraid of that.

Kristi Noem draws protesters at Chicago Christmas tree charity event – Chicago Sun-Times, December 6, 2025

Dozens of protesters gathered nearby as Noem presided over the 26th annual “Christmas Tree Ship,” a tradition in which crews aboard the U.S. Coast Guard Cutter Mackinaw unload trees to be trucked to local charities for families in need. The annual event is normally free of controversy.