Illinois Pension May Sell $3 Billion of Assets to Pay Benefits - Bloomberg

Illinois Pension May Sell $3 Billion of Assets to Pay Benefits - Bloomberg: "Illinois’s Teachers Retirement System may sell $3 billion of investments to pay for benefits this year because the state can’t make its contributions to the fund, a spokesman said.

The pension plan sold $200 million of assets in July and $290 million in August, Dave Urbanek, spokesman for the $33 billion fund, said in a phone interview.

“We understand from the comptroller that there is no money to pay us,” said Urbanek. “If we don’t get a state contribution, we will have to sell more.”

The fund was forced to sell assets last year, too, as it awaited a state contribution. That payment came after Illinois issued $3.47 billion of taxable bonds to fund its pension contribution in January. The plan to sell assets was reported earlier by Crain’s Chicago Business.

Lawmakers failed to pass a pension bond issue this year, though they may take up a proposal to issue $3.7 billion worth of the debt after the November election.