Orland Hills Police Pension Fund ranks 37th among Illinois’ most underfunded, with 39.7% of obligations covered in 2024

The Orland Hills Police Pension Fund was ranked as the 37th most underfunded police and fire pension system in Illinois in 2024, as reported by the Illinois Department of Insurance (IDOI).

Within Illinois’ Village or Township pension framework, the fund reported $10,478,984 in total pension liabilities, compared to an actuarial funding value of $4,159,584.

This equates to a funding ratio of 39.7%, indicating the fund was short by 60.3% of the assets required to completely meet promised retirement benefits.

With this shortfall, the fund’s unfunded liability totaled approximately $6,319,400.

The Illinois Department of Insurance gathers and shares information on local police and fire pensions, systems financially supported by residents in each community.

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

Some municipalities have fully funded their pensions. In 2024, 64 Illinois municipalities reported no police or fire pension debt and were not included in the rankings.

Known as “pension benefits,” police and fire pension commitments serve as deferred pay. Local officials pledge to provide retirement benefits for public safety staff, but sometimes these commitments move forward without enough financial support from employees or local taxpayers. This results in pension debt accumulating for towns, leaving future residents to manage rising costs. Municipalities fund these pensions through yearly contributions, largely supplied by property taxes, according to data collected by the IDOI.

Throughout Illinois, police and fire pension funds held an average funding ratio of 65.1% in 2024, reflecting persistent funding gaps among public safety pension plans.

Glencoe Firefighters Pension Fund posted Illinois’ lowest funding ratio at 0.9%.

Conversely, the Savoy Firefighters Pension Fund reported the state’s strongest position with a 797.7% funding ratio and an actuarial funding value of $149,803, well above its pension obligations.

Nationwide, Illinois’ total pension debt grew by $1.5 billion in 2024, reaching $143.7 billion, according to the Commission on Government Forecasting and Accountability. This continued rise marks the third year in a row of increases, leaving the debt just below its 20-year peak of $144.2 billion in 2020.

Findings from the State Department of Insurance Public Pension Division indicate suburban and downstate Illinois pension funds had unfunded actuarial liabilities totaling $12.1 billion in 2024, with a collective funding level of 49.18%. Less than half of the necessary assets were available to cover promised retiree payments.

For 2024, Illinois held the highest share of state GDP dedicated to unfunded pension liabilities, approaching 20%, according to an analysis from the Equable Institute.

The Illinois Policy Institute, an independent think tank, says this has contributed to a mounting taxpayer burden. According to the group, state pension system contributions from taxpayers increased from $614 million in fiscal year 1996 to $11.2 billion in fiscal year 2025.

This story contains information from the Illinois Department of Insurance (IDOI). Source data is available here.