Bill > HB5196

This bill modifies existing Illinois law regarding pension benefits and state bonds. It reduces the total amount of State Pension Obligation Acceleration Bonds that can be issued from $1,000,000,000 to $700,000,000, which are bonds issued to fund accelerated pension benefit payments. Additionally, it extends the deadline for participants in certain state pension systems (State Employees, State Universities, and Downstate Teachers) to elect an accelerated pension benefit payment option, which allows them to receive a lump-sum payment instead of their regular pension or a reduced increase to their pension, from June 30, 2026, to June 30, 2028. This option provides a lump sum in exchange for either foregoing future pension benefits entirely or accepting smaller annual increases to their retirement and survivor annuities.