Bill > HB2920

This bill establishes a Deferred Retirement Option Plan (DROP) for eligible state university employees under Article 15 of the Illinois Pension Code. The DROP allows employees who are eligible for full retirement to continue working for up to 5 years while having their monthly retirement annuity deposited into a special notional account. Employees must elect to participate by January 1, 2029, and can only join if they are actively employed under a collective bargaining agreement, not receiving a disability or retirement annuity, and eligible for a full pension. During the DROP period, members will continue to make employee contributions, receive employment benefits, and have their potential retirement annuity credited to a notional account that does not accrue interest. Upon terminating participation in the DROP (which must occur no later than January 1, 2034), members must retire and cannot return to active contributing membership in the retirement system. The account balance will be paid as a lump sum, and members can access the account early only in cases of hardship as determined by the pension system. The bill is designed to maintain the tax-qualified status of the pension system and requires each pension fund to administer the DROP in the best interest of its members.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2920&GAID=18&DocTypeID=HB&SessionID=114&GA=104