Illinois Legislative News: December 15, 2025
Third Reading Consulting Group
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