State Universities Retirement System of Illinois (SURS)
public plan · State of Illinois · Champaign, IL
State Universities Retirement System of Illinois (SURS) is severely underfunded at 44%, with $28.5B in unfunded liability. Plans in this bracket face significant solvency risk and are typically on regulatory funding-improvement plans, with active intervention from PBGC for private plans or state pension boards for public ones.
State Universities Retirement System of Illinois (SURS) is a public-sector pension plan sponsored by State of Illinois — covering government employees (state, local, or special-district workers). Public plans are not ERISA-governed and not PBGC-insured; they rely on state-level oversight and tax-base solvency. The plan remains active — accruing new benefits for current employees and accepting new participants. Among private-sector single-employer plans, the active status is increasingly rare as employers freeze accruals while continuing to fund existing obligations; public-sector plans are more often still actively accruing.
State Universities Retirement System of Illinois (SURS) is among the larger U.S. pension plans by asset base ($22.5B). The participant pool of 218,000 divides into 105,000 actives and 113,000 retirees, a mix that shapes both cash-flow profile and investment-horizon choices. The participant mix runs roughly even between 105,000 active workers and 113,000 retirees — a balanced demographic profile that gives the plan time to compound investment returns before payouts dominate cash flow. Annual cash flows: $2.4B in sponsor contributions versus $2.8B in benefit payments. Investment performance over the most recent year ran 5.1%, against the plan's assumed long-term return of 6.7%.
PBGC risk classification: critical. The plan faces mandatory rehabilitation under PBGC rules; participants should monitor benefit guarantees carefully. Public plans like State Universities Retirement System of Illinois (SURS) are not PBGC-insured. The benefit guarantee rests on the sponsoring government's ability and willingness to make required contributions, which interacts with state and local tax-base dynamics.
Source: DOL EFAST2 Form 5500 filings and Boston College CRR Public Plans Database.
Funding History
What This Means for You
State Universities Retirement System of Illinois (SURS) is significantly underfunded at 44%, with $28.5B in unfunded liabilities affecting 218,000 participants. Plans at this funding level face difficult choices: raising contributions substantially, reducing future benefit accruals, or in extreme cases, applying for benefit suspensions. The PBGC has flagged this plan as critical status. Public plans cannot declare bankruptcy, but severe underfunding may lead to reduced cost-of-living adjustments or increased employee contributions. If you are a participant, it is important to understand your options and consider diversifying your retirement income sources.
Year-by-Year Funding
| Year | Assets | Liabilities | Funding Ratio | Contributions |
|---|---|---|---|---|
| 2023 | $22.5B | $51.0B | 44.1% | $2.4B |
| 2022 | $21.8B | $50.8B | 43.0% | $2.3B |
| 2021 | $21.1B | $47.0B | 45.0% | $2.3B |
| 2020 | $20.5B | $52.5B | 39.0% | $2.2B |
| 2019 | $19.8B | $48.3B | 41.0% | $2.1B |
Frequently Asked Questions
State Universities Retirement System of Illinois (SURS) is 44% funded, meaning it has 44 cents in assets for every dollar in future benefit obligations. This is significantly underfunded and participants should monitor the situation closely.
State Universities Retirement System of Illinois (SURS) has 218,000 total participants, including 105,000 active employees and 113,000 retirees currently receiving benefits.
State Universities Retirement System of Illinois (SURS) is not covered by the PBGC. Benefits depend entirely on the plan's assets and the sponsor's ability to fund it.
The Pension Health Score (0-100, A-F) measures a pension plan's financial strength based on funding ratio (50%), funding trend over 3 years (30%), and PBGC risk level (20%). Higher scores indicate more secure retirement benefits.
Pension Health Score is calculated from funding ratio, 3-year funding trend, and PBGC risk classification.