Bill > HB2796

This bill establishes a Deferred Retirement Option Plan (DROP) for downstate firefighters, which allows eligible firefighters aged 50 or older with at least 20 years of service to continue working while simultaneously having their retirement pension paid into a special account. Under this plan, which will first become available on January 1, 2026, participants can remain in active service for up to 3 years while their monthly retirement pension is deposited into a separate DROP account. The DROP account will earn 7% interest compounded monthly and include the firefighter's employee contributions. At the end of the DROP participation period, the firefighter must terminate service and will receive their accumulated DROP account balance either as a lump sum or an actuarially equivalent annuity. The retirement pension will be calculated based on the firefighter's salary and service credit at the start of DROP participation, including any annual increases that would have accrued if they had retired on that date. Importantly, firefighters can participate in the DROP plan only once, and they must file an irrevocable resignation letter effective at the end of their DROP participation. The bill also specifies provisions for disability, death, and other scenarios during DROP participation, and it requires implementation without state reimbursement.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2796&GAID=18&DocTypeID=HB&SessionID=114&GA=104