Joliet Police Pension Fund ranks 318th in Illinois for pension underfunding in 2024

In 2024, the Joliet Police Pension Fund ranked 318th among the state’s police and fire pension systems with the most underfunding, according to the Illinois Department of Insurance (IDOI).

The fund operates as part of Illinois’ Village or Township pension system model. It reported $530,883,643 in total pension liabilities for the period, with an actuarial funding value totaling $355,055,568.

This calculates to a funding ratio of 66.9%, indicating the fund held 33.1% less in actuarial assets than needed to fulfill retirement benefit commitments.

The resulting shortfall, or unfunded liability, reached about $175,828,075 for the pension system.

The Illinois Department of Insurance provides and publishes details on local police and fire pensions that are financially supported by municipal residents.

As of 2024, 300 fire and 363 police pension funds were active in Illinois, with some municipalities managing both and others supporting only one.

Some municipalities reported no outstanding liabilities for police or fire pensions in 2024—these 64 municipalities were not included in the underfunding rankings.

Pension obligations for police and fire, known as “pension benefits,” serve as deferred pay. While municipal officials pledge retirement compensation to public safety workers, adequate financing is at times not secured from employees or local taxpayers. Such gaps cause unfunded pension liabilities, with financial responsibility shifting forward to future residents. Municipal annual contributions, primarily from property taxes and detailed in IDOI data, help maintain pension systems.

Across the state, Illinois police and fire retirement funds recorded an average funding ratio of 65.1% in 2024, reflecting widespread shortfalls among local public safety pension systems.

Among all systems, the Glencoe Firefighters Pension Fund reported the lowest Illinois funding ratio—only 0.9%.

The Savoy Firefighters Pension Fund was the state’s best funded retirement plan, holding a 797.7% funding ratio and an actuarial value of $149,803, well above its liabilities.

Statewide pension debt in Illinois climbed by $1.5 billion in 2024, topping out at $143.7 billion, based on the Commission on Government Forecasting and Accountability report. This increase marks three years of consecutive growth, placing debt close to its 20-year high of $144.2 billion reached in 2020.

A report from the State Department of Insurance Public Pension Division noted that suburban and downstate pension plans faced $12.1 billion in unfunded actuarial liabilities in 2024, resulting in a combined funding ratio of 49.18%. This indicates more than half of the assets needed to cover retirement promises were missing.

Data for 2024 also showed that Illinois had the nation’s largest share of its GDP dedicated to unfunded pension liabilities, approaching 20%, according to analysis by the Equable Institute. 

The Illinois Policy Institute, classifying itself as nonpartisan, reported that this trend has raised the taxpayer burden. The organization stated that taxpayer-funded contributions to state pension systems grew from $614 million in fiscal 1996 to $11.2 billion in fiscal 2025.

Information in this article was obtained from the Illinois Department of Insurance (IDOI). The source data can be found here.