Lawmakers on Tuesday cited a Moody's report regarding the SEC involvement and stating that the state’s pension system is only funded by 50 percent with liabilities as close to $136 billion.

Illinois Statehouse News contacted Gov. Pat Quinn's office for comment, but did not receive a callback.

However, state Rep. Patti Bellock, R-Westmont, said the governor's office told her that the state is fully cooperating with the SEC and its inquiry. Bellock, a member of Illinois’s Commission on Government Forecasting and Accountability, said she believes the SEC is questioning how accurate Illinois has characterized its pension debt.

“I’ve never agreed with the underfunding of our pension systems and not making our pension contribution,” Bellock said. “And I think we need to move forward with an audit on our pension systems to make sure that everything is accurate and clear and that there’s full transparency as to what our actual debt really is.”

State Sen. Donne E. Trotter, D-Chicago, serves as the budget expert for that chamber. He said the SEC inquiry could be useful.

“From time to time we need these checks and balances, which is why we have these various agencies to ensure that we’re doing the correct thing with the funds that we are entrusted with,” said Trotter, also a COGFA member.

John Nester, director of public affairs for the SEC, declined to comment on Tuesday.

Trotter said he’s not going to speculate if the SEC is launching an investigation.

“I look at it more as an audit of the system,” Trotter said. “I haven’t heard that there was some supposed illegal or wrong-doing that’s happening. It’s just again – they’re looking at the system to ensure that it is stable.”

The SEC has also reviewed pension systems in New Jersey and California. Illinois has the worst underfunded pension fund in the nation, according to many studies. Lawmakers last year passed, and the governor signed into law, pension reforms that increase the retirement age for new employees as of Jan. 1 from 60 to 67 years old, the highest in the nation.