Normal Police Pension Fund places 170th for underfunding among Illinois police and fire pensions in 2024

The Normal Police Pension Fund placed 170th for underfunding among Illinois police and fire pension funds in 2024, the Illinois Department of Insurance (IDOI) reported.

Operating within Illinois’ Village or Township pension system structure, the fund reported $99,819,393 in total pension liabilities, with an actuarial funding value of $57,158,814.

This results in a funded ratio of 57.3%, indicating the fund was short 42.7% of the actuarial assets required to cover its pension commitments.

That asset shortfall left the pension system with an unfunded liability close to $42,660,579.

The Illinois Department of Insurance collects and releases data on municipal police and fire pension funds, which draw financial support from the respective municipalities’ residents.

As of 2024, the state had 300 fire and 363 police pension funds. Some municipalities operate both types, while others manage only one.

Sixty-four municipalities in 2024 had no outstanding police or fire pension liabilities and were not ranked as a result.

Police and fire pension obligations, commonly called “pension benefits,” are structured as deferred compensation. Though municipal officials commit to funding these retirement benefits for public safety workers, this sometimes occurs without collecting adequate contributions from employees or taxpayers. Such underfunding has led to an accumulation of pension debt, transferring financial obligations to future community members. Municipalities annually contribute to these pension funds primarily through property taxes, according to data reported by the IDOI.

Statewide, Illinois police and fire pension systems held an average funded ratio of 65.1% in 2024, revealing a broad pattern of underfunded local retirement plans for public safety workers.

The pension fund with the lowest funding ratio statewide—the Glencoe Firefighters Pension Fund—reported just 0.9% funding.

By contrast, Savoy Firefighters Pension Fund was Illinois’ best-funded, achieving a funding ratio of 797.7% and an actuarial funding value of $149,803, surpassing its obligations by a wide margin.

Illinois’ overall pension debt grew by $1.5 billion in 2024, raising its total to $143.7 billion, based on a Commission on Government Forecasting and Accountability report. The increase marked a third consecutive annual rise, putting the state just below the $144.2 billion peak from 2020.

State Department of Insurance Public Pension Division data shows suburban and downstate pension funds reported $12.1 billion in unfunded actuarial liabilities in 2024, with a combined funding ratio of 49.18%, amounting to less than half the assets needed for promised benefits.

A 2024 study by the Equable Institute found that Illinois allocated nearly 20% of its gross domestic product to unfunded pension liabilities—the largest share of any state. 

The Illinois Policy Institute, describing itself as a nonpartisan think tank, said this is placing growing financial pressure on taxpayers. The group reported that taxpayer-funded contributions to state pensions grew from $614 million in fiscal year 1996 to $11.2 billion in fiscal year 2025.

Source: Illinois Department of Insurance (IDOI). The original data is available here.