Nice returns for the year at Illinois teachers’ pension, but….

TRS, the Illinois pension for teachers outside of Chicago, reported today that it generated a positive 12.6 percent rate of return, net of fees, during fiscal year 2017 (which ended on June 30) – a return that exceeded the System’s custom investment benchmark of 11.4 percent. TRS is the state’s biggest pension and accounts for roughly 60% of the state’s unfunded pension liability. That’s good news, but the problem is that TRS, like most Illinois pensions, just doesn’t have the assets on which good returns will return it to health. It’s funded ratio is just 39.8% according to the most

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