Bill > HB4873

This bill: Reinserts the provisions of the introduced bill with the following changes. In provisions establishing a deferred retirement option plan for members under the State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles, provides that the applicable pension fund or retirement system (rather than the State Treasurer) shall administer and implement the deferred retirement option plan. Further amends the Illinois Pension Code. In the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles, provides that, on and after January 1, 2026, each annual increase to a Tier 2 retirement pension shall be calculated at 3% of the originally granted pension. Effective July 1, 2025. The bill establishes a deferred retirement option plan (DROP) for eligible members under Articles 14, 15, 16, and 17 of the Illinois Pension Code, allowing them to defer their retirement annuity for up to 5 years while continuing to work. It also provides options for accelerated pension benefit payments in lieu of regular pension benefits under Articles 2, 17, and 18. Additionally, the bill makes changes to the annual increase calculations for Tier 2 retirement pensions under certain Articles.