Macon Reporter

Illinois state Rep. Adam Niemerg (R-Dieterich) shared on social media S&P’s comments on the state’s pensions.

Niemerg took to Facebook this week, with the legislator sharing a link to a recent Center Square article focusing on S&P Global’s Pension Spotlight: Illinois report. The report pointed out that the state’s pension problems will be a financial burden on Illinois for years to come.

“S&P says Illinois’ ‘poorly funded’ pensions will continue to stress state and local government budgets as the state sees ‘weak demographic trends’ and ‘shrinking population,’” Niemerg said on Facebook.

The state funds five employee retirement systems, including the General Assembly Retirement System (GARS), the State Universities Retirement System (SURS), the State Employees' Retirement System (SERS), the Teachers' Retirement System (TRS) and Judges’ Retirement System (JRS); the S&P report said. Amid rising pension costs, Illinois stuck to policies that defer contributions and impede the funding status of the state pension plans.

The report indicated that the retirement systems include single-employer defined-benefit plans as well as cost-sharing, multiple-employer defined-benefit plans that are funded by state and local government employers.

The report also considered the state’s payments to a pension stabilization fund in addition to the state-sponsored plans and the expected supplemental payment in the next fiscal year’s budget, but noted that the payments still come up short of what would be seen as progress. Another hurdle was the fact that the state’s unfunded liability amortization has failed to keep up with wage growth.

The Center Square article reported that all five funds stand at 42.4% funding when viewed together. To save money, the state began a benefit tier that was instituted in 2010. Unfortunately, it is not providing enough relief, particularly amid the increasing price tag of taxpayer-subsidized health care, which was not considered when the state set aside money for the funds.

Niemerg has served in the Illinois General Assembly in Springfield since 2021, his website biography said. He works as a senior claims adjuster for Country Financial and is also a member of the Farm Bureau. Niemerg lives in Dieterich with his wife and two children.