Sycamore Police Pension Fund ranks 207th for underfunding among Illinois public safety pensions in 2024

In 2024, the Sycamore Police Pension Fund placed 207th among Illinois’ most underfunded police and fire pension systems, based on information from the Illinois Department of Insurance (IDOI).

The fund operates within Illinois’ City pension framework, recording total pension liabilities at $33,656,420 while actuarial funding assets came to $20,165,500.

The resulting funding ratio was 59.9%, indicating a 40.1% shortfall in assets necessary to fully meet its retirement benefit obligations.

This funding gap resulted in the pension system accumulating an unfunded liability of roughly $13,490,920.

The Illinois Department of Insurance compiles and releases statistics on local police and fire pensions, which are financially supported by each community’s residents.

As of 2024, the state maintained 300 fire and 363 police pension systems. Some towns handle both, while others operate just one.

There are municipalities without any unfunded pension debt. For 2024, 64 such places reported zero police or fire pension liabilities and were not included in the rankings.

Pension obligations for police and fire, commonly called “pension benefits,” serve as deferred compensation. Municipal officials promise retirement benefits to public safety workers, but occasionally do so without sufficient monetary support from workers or taxpayers. The resulting funding deficiencies create debt for local governments, passing long-term costs to future citizens. Municipalities fund these systems mainly through annual property tax contributions, which are included in the IDOI’s data.

Statewide in 2024, police and fire pension programs averaged a 65.1% funding ratio, underlining gaps in funding among public safety retirement plans.

The Glencoe Firefighters Pension Fund reported Illinois’ lowest funding ratio at just 0.9%.

At the other end, the Savoy Firefighters Pension Fund led the state with a 797.7% funding ratio and an actuarial funding value of $149,803, well above its liabilities.

Illinois’ statewide pension liability grew by $1.5 billion in 2024, increasing to $143.7 billion, per a report from the Commission on Government Forecasting and Accountability. This is the third year in a row for increases, leaving the total just shy of the 20-year peak of $144.2 billion set in 2020.

Data from the State Department of Insurance Public Pension Division shows that downstate and suburban Illinois pension funds had $12.1 billion in unfunded actuarial liabilities in 2024, with a combined funding ratio of 49.18%. These funds were short more than half the assets needed for promised benefit payouts.

In 2024, Illinois had the largest percentage of its GDP dedicated to unfunded pension liabilities, approaching 20%, as noted by the Equable Institute.

The Illinois Policy Institute, a nonpartisan policy center, contends this puts an increasing strain on taxpayers. The institute reports that taxpayer-funded contributions to state pensions rose from $614 million in fiscal 1996 to $11.2 billion for fiscal 2025.

Details in this article are sourced from the Illinois Department of Insurance (IDOI). You can access the data here.