Kankakee Police Pension Fund ranks 140th statewide for funding shortfall in 2024

The Kankakee Police Pension Fund placed 140th among the police and fire pension systems with the lowest funding ratios in Illinois for 2024, the Illinois Department of Insurance (IDOI) reported.

Managed under Illinois’ City pension system, the fund reported $90,680,109 in total pension liabilities and held an actuarial funding value of $49,897,947.

This equates to a 55% funding ratio, meaning the system lacked 45.0% of the actuarial assets required for full benefit coverage.

The gap between the fund’s assets and obligations resulted in an unfunded liability of about $40,782,162.

The Illinois Department of Insurance maintains and shares data on local police and fire pension systems—which are funded by residents in each municipality.

As of 2024, Illinois maintained 300 fire and 363 police pension funds. Some towns oversee both types, while others operate just one.

Some municipalities do not carry unfunded pension debt. In 2024, 64 municipalities reported no outstanding police or fire pension liabilities and were omitted from this list.

Police and fire pension obligations, often known as “pension benefits,” are considered deferred compensation. City officials pledge to provide retirement benefits for public safety workers, sometimes without ensuring sufficient contributions from employees or local taxpayers. This funding gap contributes to growing pension debt for local governments, shifting the responsibility to future residents. Municipalities fund these systems with yearly contributions, which typically come from property taxes and are included in IDOI data.

Statewide, the average funding ratio for police and fire pension funds in Illinois hit 65.1% in 2024, illustrating ongoing funding challenges among local public safety retirement funds.

In 2024, the Glencoe Firefighters Pension Fund held the lowest funding ratio in the state at 0.9%.

In contrast, the Savoy Firefighters Pension Fund was Illinois’ best funded system, with a 797.7% funding ratio and actuarial funding value of $149,803, exceeding its liabilities by a wide margin.

Illinois’ total statewide pension debt rose by $1.5 billion in 2024, hitting $143.7 billion, according to the Commission on Government Forecasting and Accountability. This is the third year in a row pension debt has increased and leaves the total just below the $144.2 billion record set in 2020.

According to the State Department of Insurance Public Pension Division, Illinois’ suburban and downstate pension funds collectively held $12.1 billion in unfunded actuarial liabilities in 2024, reporting a combined funding ratio of 49.18%. This reflects a shortfall of more than half the assets needed for promised benefits.

For 2024, Illinois had the highest proportion of its GDP allocated to unfunded pension liabilities, nearing 20%, according to an Equable Institute study. 

The Illinois Policy Institute, an independent think tank, says this drives a rising taxpayer burden. Its data show taxpayer contributions to the state’s pension systems increased from $614 million in fiscal 1996 to $11.2 billion in fiscal 2025.

Information in this article was provided by the Illinois Department of Insurance (IDOI). The original data is available here.