Thanks to Bob Lyons for the numbers.
When I posted a tweet on sick days and pensions the other day, I got push back on my math.
One guy claimed he had two – yes two – masters degrees and he knew for a fact that his school district doesn’t pay for his pension.
So, yes. District do pay a contribution. And 64% of the districts in the state pay part the employee contribution instead paying salary increases.
For the fiscal year ending June 30, 2019.
Member Contribution $964 million
School Districts $88.5 million
State Contribution $4,500 million
Total Contribution $5,552.5 million
Benefit Payout $6,800 million
Investment Return 5.2% $2,600 million
Without a positive investment return of at least 3% we would have had a negative cash flow for FY 2019
Fund balance at the end of FY 2019 $53.3 billion 40.5% funded Total liability $131.5 billion ($78.2 unfunded)
And using the state spending plan that started in 1995 and since amended, TRS called for and expects to receive $5.1 billion in FY 2021 from the state of Illinois with 75% of that representing the state’s partial contribution of what they owe TRS for past underpayments.
In other words, not going out as a benefit.