New law borrows $1 billion to extend pension buyout option for Illinois state employees, including educators

(The Center Square) – Gov. J.B. Pritzker signed into law Thursday a measure that borrows $1 billion to extend the existing pension buyout program for Illinois state employees for two more…

(The Center Square) – Gov. J.B. Pritzker signed into law Thursday a measure that borrows $1 billion to extend the existing pension buyout program for Illinois state employees for two more years.

It is the latest in an effort to reduce the worst-rated state’s massive unfunded liability for its retirement systems.

“The legislation I’ll sign today extends the window for state employees, university workers, and educators to take advantage of early access to their pension savings through fiscal year 2026,” Pritzker said during a news conference in Springfield Thursday.