Pritzker Pension Proposals Offer Mixed Bag for Illinois

Some reforms build on proven solutions, while others could delay progress on state's pension crisis

Published on Feb. 6, 2026

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Gov. J.B. Pritzker outlined new proposals aimed at addressing Illinois' long-standing pension crisis. While some of the ideas, like expanding the state's pension buyout program and using surplus revenues to pay down pension debt, are positive steps, other proposals like raising the Tier 2 pensionable earnings cap could increase costs without clear evidence of necessity.

Why it matters

Illinois has one of the worst-funded pension systems in the country, with over $130 billion in unfunded liabilities. Addressing this crisis is crucial to the state's long-term fiscal health and ability to fund critical public services. Pritzker's proposals represent an attempt to tackle the problem, but lawmakers must carefully evaluate each idea to ensure they provide meaningful reform without adding to the burden on taxpayers.

The details

Among the positive proposals are expanding the state's pension buyout program, which has already reduced liabilities by $2.9 billion, and directing surplus revenues to pay down pension debt. However, extending the deadline to reach 100% funding from 2045 to 2048 could delay progress. The plan to raise the Tier 2 pensionable earnings cap to Social Security levels is also concerning, as Tier 2 benefits are already more generous than most receive from Social Security, and the change could significantly increase costs without clear evidence of necessity.

  • The state's pension buyout program was first signed into law in 2018 and has been extended twice since then.
  • Illinois is paying down bonds that expire in 2030 and 2033.

The players

Gov. J.B. Pritzker

The current governor of Illinois who has proposed new plans to address the state's pension crisis.

Mark Batinick

A former state representative and current senior fellow at the Illinois Policy Institute, who originally championed the idea of the state's pension buyout program.

Robert Marwick

A state senator from Chicago who has filed legislation to extend the pension buyout program to Chicago's pension systems and downstate police and fire pensions.

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What they’re saying

“Extending these benefits to downstate employees would generate additional savings.”

— Robert Marwick, State Senator (illinoispolicy.org)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Pritzker's pension proposals represent a mixed bag, with some positive steps like expanding the buyout program, but also concerning ideas like raising the Tier 2 pensionable earnings cap. Lawmakers must carefully evaluate each proposal to ensure they provide meaningful reform without adding to the burden on Illinois taxpayers.