The Illinois Auditor General announced that the special funding allocation schedules for the State Universities Retirement System (SURS) were fairly presented as of June 30, 2024, with the audit identifying no issues.
According to the Illinois Auditor General, the special funding allocation schedules for SURS were fairly presented in all material respects for the year ended June 30, 2024, with no findings. The report notes that Illinois, as a non-employer contributing entity, must recognize its proportionate share of pension expenses and liabilities for community colleges, state universities, and related organizations. The net pension liability is based on a roll-forward from the June 30, 2023 actuarial valuation, while defined contribution plan expenses use current-year data.
State Universities Retirement System data shows that as of June 30, 2024, SURS’ net position covered 44.6 percent of its total pension liability. This reflects ongoing underfunding. Data from the Illinois Policy Institute highlights that high property taxes and regulatory burdens contribute to outmigration, with 95 percent of residents leaving for lower-tax states. This intensifies affordability challenges for those remaining.
The Equable Institute reported that Illinois public pension systems maintain a funded ratio of approximately 52 percent, ranking as the lowest nationwide. This is ahead of Kentucky at 54 percent and New Jersey at 55 percent. In contrast, states like South Dakota achieve over 100 percent funding. This disparity underscores Illinois’ persistent pension shortfalls compared to better-managed systems across the country.
The Office of the Illinois Auditor General operates as an independent entity tasked with auditing state agencies, boards, and commissions to ensure accountability and effective resource management. It delivers impartial assessments to the legislature and citizens regarding governmental functions and financial practices. The office supports transparency in public expenditures and operations.
