summary
Introduced
02/03/2026
02/03/2026
In Committee
02/06/2026
02/06/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the State Universities Article of the Illinois Pension Code. Creates a deferred retirement option plan (DROP) for certain participating employees who are eligible to retire under the Article, have never received a retirement annuity from the System, and are active participants in the System. Provides that, during the period of the DROP, the System shall credit to a notional account on behalf of the DROP member an amount equal to the monthly amount of retirement annuity the DROP member would otherwise be eligible to receive had the DROP member retired on the date of the election. Provides that an eligible member may elect to participate in the DROP for a period not to exceed 5 years from the date of election. Requires a DROP member to terminate employment with the employer upon expiration of their participation in the DROP. Sets forth other provisions concerning interest on the account; termination of the DROP; contributions; administrative costs; transfer of administrative responsibility to the State Treasurer; and the tax-qualified status of the System.
AI Summary
This bill establishes a Deferred Retirement Option Plan (DROP) for certain employees participating in the State Universities Retirement System (SURS) who are eligible to retire but have not yet received a retirement annuity. Under this plan, eligible members can elect to participate for up to five years, during which time a notional account will be credited with the monthly retirement annuity they would have received had they retired immediately. DROP members will continue to make contributions as if they were active employees, and these contributions will also be added to their DROP account. Upon the expiration or termination of their DROP participation, members will receive their accumulated account balance as a lump sum, and their retirement annuity will then commence. Importantly, DROP members must terminate their employment upon the end of their DROP period, and they will be considered active employees for death and disability benefit eligibility but will not accrue further service credit or be eligible to purchase additional service. The bill also aims to ensure the plan remains tax-qualified under federal law and allows for the potential transfer of administrative responsibility to the State Treasurer.
Sponsors (1)
Last Action
Referred to Rules Committee (on 02/06/2026)
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