Woodstock Police Pension Fund ranks 330th in Illinois for underfunding with 67.9% coverage in 2024

In 2024, the Woodstock Police Pension Fund stood at 330th place among Illinois’ most underfunded police and fire pension systems, as reported by the Illinois Department of Insurance (IDOI).

Operating within Illinois’ Village or Township pension structure, the fund disclosed total pension liabilities of $47,219,173 and an actuarial funding value of $32,048,191.

This equates to a 67.9% funding ratio, indicating a shortfall of 32.1% in the actuarial assets needed to fully meet its retirement benefit promises.

The gap between assets and liabilities left the fund with an unfunded liability around $15,170,982.

The Illinois Department of Insurance compiles and releases data on local police and fire pension systems, which are financially supported by residents of each municipality.

As of 2024, Illinois reported 300 fire and 363 police pension funds. Some areas operate both, while others only manage one.

There are municipalities without any unfunded pension debt. In 2024, 64 municipalities indicated they had no outstanding police or fire pension liabilities, so they are omitted from these rankings.

Police and fire pension obligations, frequently referred to as “pension benefits,” serve as deferred compensation. Municipal officials pledge retirement benefits for public safety staff, but may do so without putting in enough contributions from employees or taxpayers. The shortfall results in rising municipal pension debt, handing on the costs to residents yet to come. To maintain these funds, cities and villages make yearly contributions, largely through property taxes, as reflected in reporting compiled by the IDOI.

Statewide in Illinois, police and fire pension funds posted an average funding ratio of 65.1% in 2024, indicating consistent funding challenges across local public safety pensions.

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

In comparison, the Savoy Firefighters Pension Fund led the state with a funding ratio of 797.7% and an actuarial funding value of $149,803, far higher than its obligations.

Illinois’ statewide pension debt expanded by $1.5 billion in 2024, hitting $143.7 billion, based on a report by the Commission on Government Forecasting and Accountability. This marks three consecutive years of increases, with debt now just under the 20-year high of $144.2 billion reached in 2020.

Information from the State Department of Insurance Public Pension Division indicates that pension funds for Illinois’ suburban and downstate areas held $12.1 billion in unfunded liabilities during 2024, resulting in a collective funding ratio of 49.18%. This shows that over half the required assets were lacking to cover pension commitments.

During 2024, Illinois committed the highest share of state GDP to unfunded pension liabilities, approaching 20%, as noted in a study from the Equable Institute. 

The Illinois Policy Institute, described as a nonpartisan think tank, maintains that taxpayer commitment to funding pensions is growing, with taxpayer contributions to state pension funds increasing from $614 million in fiscal year 1996 to $11.2 billion in fiscal year 2025. The group has argued this trend raises the burden on taxpayers.

The data in this article was sourced from the Illinois Department of Insurance (IDOI). The original source material can be accessed here.