Alsip Firefighters Pension Fund ranks 445th in Illinois for lowest funding in 2024, covering 76.3% of benefits

In 2024, the Alsip Firefighters Pension Fund placed 445th among Illinois police and fire pension systems with the lowest funding ratios, according to the Illinois Department of Insurance (IDOI).

The fund operates under Illinois’ Village or Township pension framework, reporting $57,311,258 in total pension liabilities and an actuarial asset value of $43,735,283.

With a funding ratio of 76.3%, the fund fell 23.7% short of having the actuarial assets to fully pay promised retirement benefits.

This shortfall resulted in the system carrying an unfunded liability of about $13,575,975.

The Illinois Department of Insurance gathers and disseminates data on local police and fire pension systems—which are financially supported by residents in each municipality.

As of 2024, Illinois was home to 300 fire and 363 police pension funds. Some municipalities manage both types, while others fund only one.

Not every municipality has unfunded pension debt. In 2024, 64 municipalities had no police or fire pension liabilities and were not included in the rankings.

Police and fire pension liabilities, commonly called “pension benefits,” serve as deferred compensation. Local government officials promise retirement income for public safety employees, sometimes without securing enough payments from employees or taxpayers to fund these obligations. Such funding gaps lead to growing municipal pension debt, ultimately shifting costs to future residents. To support pension funds, municipalities make yearly contributions, mostly funded by property taxes, as tracked by the IDOI’s data.

Statewide in 2024, police and fire pension systems averaged only a 65.1% funding ratio, reflecting extensive shortfalls in asset coverage among local public safety pensions.

Among these, the lowest funding ratio was found at Glencoe Firefighters Pension Fund, with only 0.9% of obligations funded.

Conversely, Savoy Firefighters Pension Fund led all systems, boasting a 797.7% funding ratio and an actuarial asset value of $149,803, far outpacing its liabilities.

Illinois’ total pension debt rose by $1.5 billion in 2024, bringing the state’s obligation to $143.7 billion, according to the Commission on Government Forecasting and Accountability. This is the third straight year of increases, approaching the 20-year high of $144.2 billion recorded in 2020.

A report from the Public Pension Division of the State Department of Insurance found that Illinois’ suburban and downstate systems held $12.1 billion in unfunded actuarial liabilities in 2024, with a combined funding ratio at 49.18%. These systems had less than half the assets needed to meet retirement obligations.

In 2024, a study from the Equable Institute found that Illinois allocated nearly 20% of its GDP to unfunded pension liabilities, representing the largest share among states.

The Illinois Policy Institute, a nonpartisan think tank, contends that this situation is increasing the tax burden for residents. The group noted taxpayer contributions to state pension systems jumped from $614 million in fiscal year 1996 to $11.2 billion projected for fiscal year 2025.

Information in this article was sourced from the Illinois Department of Insurance (IDOI). The original data can be accessed here.