$100 million settlement owed to state pension system

Published 11/21 2013 03:55PM

Updated 11/21 2013 05:55PM

SPRINGFIELD -- The state's pension systems are getting a much-needed boost. Five major retirement funds will share a $100 million settlement from J.P. Morgan Chase Bank.

State leaders say the bank wasn't honest about how risky some investments were a few years ago and it cost Illinois a lot of money. All of it came from the major pension systems.

The state invests the money in those funds in order to grow the accounts so the state can pay out all the benefits. In this case though, Illinois didn't make as much as projected. That's part of the reason why the pension systems are so far in the red.

Experts say, putting this $100 million settlement back into the coffers is a good first step in the right direction. The settlement only covers one-tenth of a percent of the total pension liability which is about $100 billion, but it does wipe clean the debt which has built up over the past twenty days.

State leaders met behind closed doors Thursday to discuss a possible plan on a long-term pension fix. Lawmakers have been told to keep December 3 open for a vote.

Copyright 2015 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Featured Coupon


Featured Business