Cash shortage requires state to delay pension payment
A cash shortage caused by the ongoing state budget impasse will force Illinois to delay its November pension payment, but the retirement systems will be paid in full by the end of the fiscal year.
Without a budget in place, the state is operating under a series of court orders, consent decrees and continuing appropriations requiring it to pay bills at last year's rates, despite projections showing a $5 billion decline in revenue. The resulting cash shortage has caused the state's unpaid bill backlog to swell to $6.9 billion this month, and will force the Comptroller's Office to delay a $560 million monthly pension payment in November.
Despite the delay in the state's payment to the retirement systems, retirees will continue to receive their benefits checks as scheduled.
"This decision came down to choosing the least of a number of bad options and it saddens me that we've reached this point. But the fact is that our state simply does not have the revenue to meet its obligations," Munger said. "We will use every available dollar in the higher revenue months this Spring to catch up with our commitments and ensure that our retirement systems are paid in full."