Secure Illinois Retirements - Illinois Municipal Retirement Fund

Your retirement fund is secure for now.
But the state's pension debt could put your job on the line.

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Public sector jobs and government services are at risk across the state

The Illinois Municipal Retirement Fund is 94.68% funded.* However, many public-sector pension funds are less than 50% funded.

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Public sector workers might not get the retirement they're counting on

A $14 billion shortfall across all public sector pension funds is putting pressure on the state. If the retirement system goes broke, workers might not get their full pension.

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You deserve all the benefits you have earned.

We need to work with leaders and the State of Illinois to figure out how to bring the state's assets in line with how much is owed.

The only way to guarantee your pension is
safe is to have a fully funded retirement system

For decades, contributions into your fund have been diverted to pay for infrastructure projects, to fill gaps in the budget during hard times, and even to give you a raise.

This might have seemed like money well spent at the time—but diverting funds has put your retirement at risk.

Severe underfunding puts your pension system in jeopardy.

We need you

Secure Illinois Retirements is here to encourage every town in Illinois to find solutions that will work best for them. The solutions need to be resilient, so that your retirement savings will be secure.

So what can you do to help?

Looking the other way will not fix the mess we are in, but coming together will. We're organizing a grassroots movement of people to work with elected officials and help forge sustainable solutions to the pension system of Illinois.

Get informed and help save your pension

Sign up for our email list and get the latest information on legislation, workshops, days of action, events, and more. Add your name to find out how you can help. Please join us!

Join the discussion

Chase your passion, not your pension

When the time comes to retire, you should feel confident that your future is safe. You should be able to spend more time with your family or doing the hobbies you love.

No one deserves to have their retirement put in jeopardy after they retire because they are not receiving the pension benefits they were promised.

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When it’s time to retire, where will you be?

The Illinois Municipal Retirement Fund is only 94.68% funded* so imagine that means you would receive only 94% of your promised benefits. If the funded status of your retirement system determines the amount of your pension, then this is the kind of situation you could be facing.

Jan L.

Comm Operator

94.68% funded

Illinois Municipal Retirement Fund

Years of service

Retirement date:

05/01/2019

Final Salary

$79,720.68

What you have been promised

What you might get at the current funding level

TIER 1

$54,369

$51,477

INITIAL BENEFIT

TIER 2 ⁺

$47,845

$45,299

TIER 1

$63,029

$59,675

BENEFIT AFTER 5 YEARS

TIER 2 ⁺

$50,285

$47,610

Tier 1: Anyone entering service before January 1, 2011

Tier 2: Anyone entering service after January 1, 2011

The funded ratio of your retirement system will not directly correlate with the portion of your pension you end up receiving.

The likely scenario is that everybody will get their full benefits for as long as the fund is solvent. When a fund becomes insolvent, your retirement is in peril.

This benefits calculator can show you what you've been promised.
But a poorly funded retirement system may not be able to deliver on that promise.

⁺ Disclaimer: The chart above is intended as a simplified illustration of how the funded status of your retirement system could impact your future pension. The chart shows actual figures for a Tier 1 employee and estimated figures for a Tier 2 employee retiring at about 65.

The two-tiered pension system was supposed to solve the problem

Illinois adopted a two-tiered pension system in 2010 to help fix the shortfall in our public retirement systems. However, a decade has passed and our pensions are still woefully underfunded.

Current retirees and more senior employees are mostly Tier 1, and will receive their original benefits. Employees hired since 2010 are Tier 2 and will receive reduced benefits when they retire in the future.

Despite all the conditions put on the benefits of Tier 2 workers, funding levels have only slightly improved. This means the benefits for Tier 2 workers are in serious risk of never being paid out.

Join us to protect your pension and your future

Municipal workers can join us to work with elected officials to help craft resilient solutions, so that we can protect pension benefits.

Secure Illinois Retirements does not claim to have all the answers. We need your input and help. We are providing a platform for public sector workers to work together to ensure a fully funded pension system.

Together, you can share ideas and help your elected officials find sustainable solutions. You can also access resources about the pension funds in Illinois, get details on legislation, days of action, events, and more.

Join the discussion at Secure Illinois Retirements and join other public sector employees to ensure a fully funded pension system.

JOIN THE DISCUSSION

Why should I care about the funded status of my retirement system?

Reasons to want a fully funded retirement system

A fully funded system generates income from investments and a smaller fraction of funding comes from employee contributions. If your system does not have any savings to invest, it has to rely solely on your contributions to continue making pension payments for retirees.

A poorly-funded system is always playing catch-up. Payments to future retirees will cost more because benefits keep rising, and during tough times, your system will not have the savings to cover its losses.

A well-funded retirement system means Illinois revenue can be used to pay for schools, hospitals, infrastructure, and public safety. If your system is underfunded, Illinois might raise taxes and fees to pay for other services.

A poorly-funded system makes pension funds vulnerable. Pensions payments may be affected.

Cautionary tales from around the U.S.

Detroit, MI

When Detroit filed for bankruptcy in 2013, its funded ratio of assets to liabilities was 69%, which is much higher than most jurisdictions in Illinois. Due to this underfunding and subsequent bankruptcy, public safety employees had their cost-of-living adjustment cut, and civil servants had their pensions reduced.

Central Falls, RI

When Central Falls declared bankruptcy in 2011, its funded ratio was 16.2%. Pensions were slashed by over 50% before the city agreed to 25% for the first five years.

Vallejo, CA

When Vallejo emerged from bankruptcy in 2011, its funded ratio was 66.4%. The town cut police and firefighter numbers and reduced health benefits so it could keep up with mandatory pension contributions.

Harvey, IL

Harvey laid off 18 firefighters, 13 police patrolmen, and five non-sworn employees in 2016, following an intercept of the city's revenue by its police pension fund. The pension obligations had left the city unable to meet running costs.

*Data is from the 2021 Illinois Department of Insurance Public Pension Biennial Report. Our site is updated quickly after each new report is released.

Your retirement fund is secure for now. But the state's pension debt could put your job on the line.