Money that could help address the teacher shortage is often the first to get cut in pursuit of keeping up with government pension debt. Supporting Illinois teachers will require constitutional pension reform and protecting Tier 2 cost savings.
State data shows 31,937 members of Illinois’ five pension systems collected $100,000 a year or more in retirement benefits during 2024. Some got over $500,000. See the full list below.
The average retired career state employee in Illinois was paid $93,558 in pension benefits last year. That’s $24,538 more than the average Illinoisan working to pay for those retirees.
Lawmakers quietly added a fund intended to comply with federal rules about pensions for newer state workers. If it works, Illinois taxpayers will have avoided costly federal mandates and a push by public employee unions to expand obligations by $64.5 billion.
As state lawmakers finalize the 2026 budget, public sector unions are pushing for major benefit spikes for Tier 2 pensioners to be included in last-minute additions.
Illinois lawmakers could still pass expensive changes to newer state worker pensions using a “gut and replace” maneuver. The proposal would cost taxpayers over $76 billion by 2050.
Illinois teachers are required to contribute 9% of their salary toward pensions, but many school districts “pick up” this cost – putting the pension burden on taxpayers.
Tariffs by President Donald Trump sent markets tumbling and temporarily hurt public pension investments. While the markets recovered, the episode showed Chicago’s pension systems are extremely fragile.
With $18.5 billion of the city’s $52.4 billion shortfall driven by interest on pension debt, it’s clear Illinois’ largest city needs the state to pass constitutional pension reform.
Chicago Public Schools teachers hired before 2017 only pay 2% of the required employee contribution for their pensions. The other 7% is picked up by the district, costing $135 million in 2025.
Reports that give Illinois pensions a rotten grade are not evidence government workers need better benefits. What they need is a properly managed, financially solid system. Adding more costs to a fiscal mess helps no one.
Illinois’ top 50 state pensioners can expect an average lifetime payout of $8.47 million despite just $333,844 being contributed during their careers. That’s $1 in, $25 out, thanks to taxpayers.