SB 2950

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Full Text of SB2950
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	SB2950 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2950
Introduced 1/27/2026, by Sen. Robert F. Martwick
SYNOPSIS AS INTRODUCED:
30 ILCS 330/2	  from Ch. 127, par. 652
30 ILCS 330/2.5
30 ILCS 330/7.7
40 ILCS 5/14-147.5
40 ILCS 5/14-147.6
40 ILCS 5/15-185.5
40 ILCS 5/15-185.6
40 ILCS 5/16-190.5
40 ILCS 5/16-190.6
Amends the General Obligation Bond Act. Authorizes an additional $700,000,000 of State Pension Obligation Acceleration Bonds. Makes a conforming change. Amends the State Employees, State Universities, and Downstate Teachers Articles of the Illinois Pension Code. Extends the option for a participant to receive an accelerated pension benefit payment in lieu of any pension benefit or for a reduction in the increases to his or her annual retirement annuity and survivor's annuity to June 30, 2028 (instead of June 30, 2026). Effective immediately.
LRB104 18850 RPS 32295 b
A BILL FOR
		SB2950		LRB104 18850 RPS 32295 b
1    AN ACT concerning public employee benefits.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The General Obligation Bond Act is amended by
5changing Sections 2, 2.5, and 7.7 as follows:
6    (30 ILCS 330/2)  (from Ch. 127, par. 652)
7    Sec. 2. Authorization for Bonds. The State of Illinois is
8authorized to issue, sell and provide for the retirement of
9General Obligation Bonds of the State of Illinois for the
10categories and specific purposes expressed in Sections 2
11through 8 of this Act, in the total amount of $83,364,839,969
12[$82,664,839,969].
13    The bonds authorized in this Section 2 and in Section 16 of
14this Act are herein called "Bonds".
15    Of the total amount of Bonds authorized in this Act, up to
16$2,200,000,000 in aggregate original principal amount may be
17issued and sold in accordance with the Baccalaureate Savings
18Act in the form of General Obligation College Savings Bonds.
19    Of the total amount of Bonds authorized in this Act, up to
20$300,000,000 in aggregate original principal amount may be
21issued and sold in accordance with the Retirement Savings Act
22in the form of General Obligation Retirement Savings Bonds.
23    Of the total amount of Bonds authorized in this Act, the
		SB2950	- 2 -	LRB104 18850 RPS 32295 b
1additional $10,000,000,000 authorized by Public Act 93-2, the
2$3,466,000,000 authorized by Public Act 96-43, and the
3$4,096,348,300 authorized by Public Act 96-1497 shall be used
4solely as provided in Section 7.2.
5    Of the total amount of Bonds authorized in this Act, the
6additional $6,000,000,000 authorized by Public Act 100-23
7shall be used solely as provided in Section 7.6 and shall be
8issued by December 31, 2017.
9    Of the total amount of Bonds authorized in this Act,
10$2,900,000,000 [$2,200,000,000] of the additional amount
11authorized by Public Act 100-587, Public Act 102-718, Public 
12Act 104-8, and this amendatory Act of the 104th General 
13Assembly [and this amendatory Act of the 104th General Assembly]
14shall be used solely as provided in Section 7.7.
15    The issuance and sale of Bonds pursuant to the General
16Obligation Bond Act is an economical and efficient method of
17financing the long-term capital needs of the State. This Act
18will permit the issuance of a multi-purpose General Obligation
19Bond with uniform terms and features. This will not only lower
20the cost of registration but also reduce the overall cost of
21issuing debt by improving the marketability of Illinois
22General Obligation Bonds.
23(Source: P.A. 103-7, eff. 7-1-23; 103-591, eff. 7-1-24; 104-8,
24eff. 1-1-26.)
25    (30 ILCS 330/2.5)
		SB2950	- 3 -	LRB104 18850 RPS 32295 b
1    Sec. 2.5. Limitation on issuance of Bonds.
2    (a) Except as provided in subsection (b), no Bonds may be
3issued if, after the issuance, in the next State fiscal year
4after the issuance of the Bonds, the amount of debt service
5(including principal, whether payable at maturity or pursuant
6to mandatory sinking fund installments, and interest) on all
7then-outstanding Bonds, other than (i) Bonds authorized by
8Public Act 100-23, (ii) Bonds issued by Public Act 96-43,
9(iii) Bonds authorized by Public Act 96-1497, (iv) Bonds
10authorized by Public Act 100-587, [and] (v) Bonds authorized by
11this amendatory Act of the 102nd General Assembly, and (vi) 
12Bonds authorized by this amendatory Act of the 104th General 
13Assembly, would exceed 7% of the aggregate appropriations from
14the general funds, the State Construction Account Fund, and
15the Road Fund for the fiscal year immediately prior to the
16fiscal year of the issuance. For the purposes of this
17subsection (a), "general funds" has the same meaning as
18ascribed to that term under Section 50-40 of the State Budget
19Law of the Civil Administrative Code of Illinois.
20    (b) If the Comptroller and Treasurer each consent in
21writing, Bonds may be issued even if the issuance does not
22comply with subsection (a). In addition, $2,000,000,000 in
23Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
24and $2,000,000,000 in Refunding Bonds under Section 16, may be
25issued during State fiscal year 2017 without complying with
26subsection (a). In addition, $2,000,000,000 in Bonds for the
		SB2950	- 4 -	LRB104 18850 RPS 32295 b
1purposes set forth in Sections 3, 4, 5, 6, and 7, and
2$2,000,000,000 in Refunding Bonds under Section 16, may be
3issued during State fiscal year 2018 without complying with
4subsection (a).
5(Source: P.A. 101-30, eff. 6-28-19; 102-718, eff. 5-5-22.)
6    (30 ILCS 330/7.7)
7    Sec. 7.7. State Pension Obligation Acceleration Bonds.
8    (a) As used in this Act, "State Pension Obligation
9Acceleration Bonds" means Bonds authorized by Public Act
10100-587, Public Act 102-718, Public Act 104-8, and this 
11amendatory Act of the 104th General Assembly [and this ]
12[amendatory Act of the 104th General Assembly] and used for the
13purpose of making accelerated pension benefit payments under
14Articles 14, 15, and 16 of the Illinois Pension Code.
15    (b) State Pension Obligation Acceleration Bonds in the
16amount of $2,900,000,000 [$2,200,000,000] are hereby authorized
17to be used for the purpose of making accelerated pension
18benefit payments under Articles 14, 15, and 16 of the Illinois
19Pension Code.
20    (c) The proceeds of State Pension Obligation Acceleration
21Bonds authorized in subsection (b) of this Section, less the
22amounts authorized in the Bond Sale Order to be directly paid
23out for bond sale expenses under Section 8, shall be deposited
24directly into the State Pension Obligation Acceleration Bond
25Fund, and the Comptroller and the Treasurer shall, as soon as
		SB2950	- 5 -	LRB104 18850 RPS 32295 b
1practical, make accelerated pension benefit payments under
2Articles 14, 15, and 16 of the Illinois Pension Code.
3    (d) There is created the State Pension Obligation
4Acceleration Bond Fund as a special fund in the State
5Treasury. Funds deposited in the State Pension Obligation
6Acceleration Bond Fund may only be used for the purpose of
7making accelerated pension benefit payments under Articles 14,
815, and 16 of the Illinois Pension Code or for the payment of
9principal and interest due on State Pension Obligation
10Acceleration Bonds. This subsection shall constitute an
11irrevocable and continuing appropriation of all amounts
12necessary for such purposes.
13(Source: P.A. 104-8, eff. 1-1-26.)
14    Section 10. The Illinois Pension Code is amended by
15changing Sections 14-147.5, 14-147.6, 15-185.5, 15-185.6,
1616-190.5, and 16-190.6 as follows:
17    (40 ILCS 5/14-147.5)
18    Sec. 14-147.5. Accelerated pension benefit payment in lieu
19of any pension benefit.
20    (a) As used in this Section:
21    "Eligible person" means a person who:
22        (1) has terminated service;
23        (2) has accrued sufficient service credit to be
24    eligible to receive a retirement annuity under this
		SB2950	- 6 -	LRB104 18850 RPS 32295 b
1    Article;
2        (3) has not received any retirement annuity under this
3    Article; and
4        (4) has not made the election under Section 14-147.6.
5    "Pension benefit" means the benefits under this Article,
6or Article 1 as it relates to those benefits, including any
7anticipated annual increases, that an eligible person is
8entitled to upon attainment of the applicable retirement age.
9"Pension benefit" also includes applicable survivor's or
10disability benefits.
11    (b) As soon as practical after June 4, 2018 (the effective
12date of Public Act 100-587), the System shall calculate, using
13actuarial tables and other assumptions adopted by the Board,
14the present value of pension benefits for each eligible person
15who requests that information and shall offer each eligible
16person the opportunity to irrevocably elect to receive an
17amount determined by the System to be equal to 60% of the
18present value of his or her pension benefits in lieu of
19receiving any pension benefit. The offer shall specify the
20dollar amount that the eligible person will receive if he or
21she so elects and shall expire when a subsequent offer is made
22to an eligible person. An eligible person is limited to one
23calculation and offer per calendar year. The System shall make
24a good faith effort to contact every eligible person to notify
25him or her of the election.
26    Until June 30, 2028 [2026], an eligible person may
		SB2950	- 7 -	LRB104 18850 RPS 32295 b
1irrevocably elect to receive an accelerated pension benefit
2payment in the amount that the System offers under this
3subsection in lieu of receiving any pension benefit. A person
4who elects to receive an accelerated pension benefit payment
5under this Section may not elect to proceed under the
6Retirement Systems Reciprocal Act with respect to service
7under this Article.
8    (c) A person's creditable service under this Article shall
9be terminated upon the person's receipt of an accelerated
10pension benefit payment under this Section, and no other
11benefit shall be paid under this Article based on the
12terminated creditable service, including any retirement,
13survivor, or other benefit; except that to the extent that
14participation, benefits, or premiums under the State Employees
15Group Insurance Act of 1971 are based on the amount of service
16credit, the terminated service credit shall be used for that
17purpose.
18    (d) If a person who has received an accelerated pension
19benefit payment under this Section returns to active service
20under this Article, then:
21        (1) Any benefits under the System earned as a result
22    of that return to active service shall be based solely on
23    the person's creditable service arising from the return to
24    active service.
25        (2) The accelerated pension benefit payment may not be
26    repaid to the System, and the terminated creditable
		SB2950	- 8 -	LRB104 18850 RPS 32295 b
1    service may not under any circumstances be reinstated.
2    (e) As a condition of receiving an accelerated pension
3benefit payment, the accelerated pension benefit payment must
4be transferred into a tax qualified retirement plan or
5account. The accelerated pension benefit payment under this
6Section may be subject to withholding or payment of applicable
7taxes, but to the extent permitted by federal law, a person who
8receives an accelerated pension benefit payment under this
9Section must direct the System to pay all of that payment as a
10rollover into another retirement plan or account qualified
11under the Internal Revenue Code of 1986, as amended.
12    (f) Upon receipt of a member's irrevocable election to
13receive an accelerated pension benefit payment under this
14Section, the System shall submit a voucher to the Comptroller
15for payment of the member's accelerated pension benefit
16payment. The Comptroller shall transfer the amount of the
17voucher from the State Pension Obligation Acceleration Bond
18Fund to the System, and the System shall transfer the amount
19into the member's eligible retirement plan or qualified
20account.
21    (g) The Board shall adopt any rules, including emergency
22rules, necessary to implement this Section.
23    (h) No provision of this Section shall be interpreted in a
24way that would cause the applicable System to cease to be a
25qualified plan under the Internal Revenue Code of 1986.
26(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.)
		SB2950	- 9 -	LRB104 18850 RPS 32295 b
1    (40 ILCS 5/14-147.6)
2    Sec. 14-147.6. Accelerated pension benefit payment for a
3reduction in annual retirement annuity and survivor's annuity
4increases.
5    (a) As used in this Section:
6    "Accelerated pension benefit payment" means a lump sum
7payment equal to 70% of the difference of the present value of
8the automatic annual increases to a Tier 1 member's retirement
9annuity and survivor's annuity using the formula applicable to
10the Tier 1 member and the present value of the automatic annual
11increases to the Tier 1 member's retirement annuity using the
12formula provided under subsection (b-5) and survivor's annuity
13using the formula provided under subsection (b-6).
14    "Eligible person" means a person who:
15        (1) is a Tier 1 member;
16        (2) has submitted an application for a retirement
17    annuity under this Article;
18        (3) meets the age and service requirements for
19    receiving a retirement annuity under this Article;
20        (4) has not received any retirement annuity under this
21    Article; and
22        (5) has not made the election under Section 14-147.5.
23    (b) As soon as practical after June 4, 2018 (the effective
24date of Public Act 100-587) and until June 30, 2028 [2026], the
25System shall implement an accelerated pension benefit payment
		SB2950	- 10 -	LRB104 18850 RPS 32295 b
1option for eligible persons. Upon the request of an eligible
2person, the System shall calculate, using actuarial tables and
3other assumptions adopted by the Board, an accelerated pension
4benefit payment amount and shall offer that eligible person
5the opportunity to irrevocably elect to have his or her
6automatic annual increases in retirement annuity calculated in
7accordance with the formula provided under subsection (b-5)
8and any increases in survivor's annuity payable to his or her
9survivor's annuity beneficiary calculated in accordance with
10the formula provided under subsection (b-6) in exchange for
11the accelerated pension benefit payment. The election under
12this subsection must be made before the eligible person
13receives the first payment of a retirement annuity otherwise
14payable under this Article.
15    (b-5) Notwithstanding any other provision of law, the
16retirement annuity of a person who made the election under
17subsection (b) shall be subject to annual increases on the
18January 1 occurring either on or after the attainment of age 67
19or the first anniversary of the annuity start date, whichever
20is later. Each annual increase shall be calculated at 1.5% of
21the originally granted retirement annuity.
22    (b-6) Notwithstanding any other provision of law, a
23survivor's annuity payable to a survivor's annuity beneficiary
24of a person who made the election under subsection (b) shall be
25subject to annual increases on the January 1 occurring on or
26after the first anniversary of the commencement of the
		SB2950	- 11 -	LRB104 18850 RPS 32295 b
1annuity. Each annual increase shall be calculated at 1.5% of
2the originally granted survivor's annuity.
3    (c) If a person who has received an accelerated pension
4benefit payment returns to active service under this Article,
5then:
6        (1) the calculation of any future automatic annual
7    increase in retirement annuity shall be calculated in
8    accordance with the formula provided under subsection
9    (b-5); and
10        (2) the accelerated pension benefit payment may not be
11    repaid to the System.
12    (d) As a condition of receiving an accelerated pension
13benefit payment, the accelerated pension benefit payment must
14be transferred into a tax qualified retirement plan or
15account. The accelerated pension benefit payment under this
16Section may be subject to withholding or payment of applicable
17taxes, but to the extent permitted by federal law, a person who
18receives an accelerated pension benefit payment under this
19Section must direct the System to pay all of that payment as a
20rollover into another retirement plan or account qualified
21under the Internal Revenue Code of 1986, as amended.
22    (d-5) Upon receipt of a member's irrevocable election to
23receive an accelerated pension benefit payment under this
24Section, the System shall submit a voucher to the Comptroller
25for payment of the member's accelerated pension benefit
26payment. The Comptroller shall transfer the amount of the
		SB2950	- 12 -	LRB104 18850 RPS 32295 b
1voucher to the System, and the System shall transfer the
2amount into a member's eligible retirement plan or qualified
3account.
4    (e) The Board shall adopt any rules, including emergency
5rules, necessary to implement this Section.
6    (f) No provision of this Section shall be interpreted in a
7way that would cause the applicable System to cease to be a
8qualified plan under the Internal Revenue Code of 1986.
9(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.)
10    (40 ILCS 5/15-185.5)
11    Sec. 15-185.5. Accelerated pension benefit payment in lieu
12of any pension benefit.
13    (a) As used in this Section:
14    "Eligible person" means a person who:
15        (1) has terminated service;
16        (2) has accrued sufficient service credit to be
17    eligible to receive a retirement annuity under this
18    Article;
19        (3) has not received any retirement annuity under this
20    Article;
21        (4) has not made the election under Section 15-185.6;
22    and
23        (5) is not a participant in the self-managed plan
24    under Section 15-158.2.
25    "Implementation date" means the earliest date upon which
		SB2950	- 13 -	LRB104 18850 RPS 32295 b
1the Board authorizes eligible persons to begin irrevocably
2electing the accelerated pension benefit payment option under
3this Section. The Board shall endeavor to make such
4participation available as soon as possible after June 4, 2018
5(the effective date of Public Act 100-587) and shall establish
6an implementation date by Board resolution.
7    "Pension benefit" means the benefits under this Article,
8or Article 1 as it relates to those benefits, including any
9anticipated annual increases, that an eligible person is
10entitled to upon attainment of the applicable retirement age.
11"Pension benefit" also includes applicable survivors benefits,
12disability benefits, or disability retirement annuity
13benefits.
14    (b) Beginning on the implementation date, the System shall
15offer each eligible person the opportunity to irrevocably
16elect to receive an amount determined by the System to be equal
17to 60% of the present value of his or her pension benefits in
18lieu of receiving any pension benefit. The System shall
19calculate, using actuarial tables and other assumptions
20adopted by the Board, the present value of pension benefits
21for each eligible person upon his or her request in writing to
22the System. The System shall not perform more than one
23calculation per eligible member in a State fiscal year. The
24offer shall specify the dollar amount that the eligible person
25will receive if he or she so elects and shall expire when a
26subsequent offer is made to an eligible person. The System
		SB2950	- 14 -	LRB104 18850 RPS 32295 b
1shall make a good faith effort to contact every eligible
2person to notify him or her of the election.
3    Beginning on the implementation date and until June 30,
42028 [2026], an eligible person may irrevocably elect to receive
5an accelerated pension benefit payment in the amount that the
6System offers under this subsection in lieu of receiving any
7pension benefit. A person who elects to receive an accelerated
8pension benefit payment under this Section may not elect to
9proceed under the Retirement Systems Reciprocal Act with
10respect to service under this Article.
11    (c) Upon payment of an accelerated pension benefit payment
12under this Section, the person forfeits all accrued rights and
13credits in the System and no other benefit shall be paid under
14this Article based on those forfeited rights and credits,
15including any retirement, survivor, or other benefit; except
16that to the extent that participation, benefits, or premiums
17under the State Employees Group Insurance Act of 1971 are
18based on the amount of service credit, the terminated service
19credit shall be used for that purpose.
20    (d) If a person who has received an accelerated pension
21benefit payment under this Section returns to participation
22under this Article, any benefits under the System earned as a
23result of that return to participation shall be based solely
24on the person's credits and creditable service arising from
25the return to participation. Upon return to participation, the
26person shall be considered a new employee subject to all the
		SB2950	- 15 -	LRB104 18850 RPS 32295 b
1qualifying conditions for participation and eligibility for
2benefits applicable to new employees.
3    (d-5) The accelerated pension benefit payment may not be
4repaid to the System, and the forfeited rights and credits may
5not under any circumstances be reinstated.
6    (e) As a condition of receiving an accelerated pension
7benefit payment, the accelerated pension benefit payment must
8be deposited into a tax qualified retirement plan or account
9identified by the eligible person at the time of the election.
10The accelerated pension benefit payment under this Section may
11be subject to withholding or payment of applicable taxes, but
12to the extent permitted by federal law, a person who receives
13an accelerated pension benefit payment under this Section must
14direct the System to pay all of that payment as a rollover into
15another retirement plan or account qualified under the
16Internal Revenue Code of 1986, as amended.
17    (f) The System shall submit vouchers to the State
18Comptroller for the payment of accelerated pension benefit
19payments under this Section. The State Comptroller shall pay
20the amounts of the vouchers from the State Pension Obligation
21Acceleration Bond Fund to the System, and the System shall
22deposit the amounts into the applicable tax qualified plans or
23accounts.
24    (g) The Board shall adopt any rules, including emergency
25rules, necessary to implement this Section.
26    (h) No provision of this Section shall be interpreted in a
		SB2950	- 16 -	LRB104 18850 RPS 32295 b
1way that would cause the System to cease to be a qualified plan
2under the Internal Revenue Code of 1986.
3(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.)
4    (40 ILCS 5/15-185.6)
5    Sec. 15-185.6. Accelerated pension benefit payment for a
6reduction in an annual increase to a retirement annuity and an
7annuity benefit payable as a result of death.
8    (a) As used in this Section:
9    "Accelerated pension benefit payment" means a lump sum
10payment equal to 70% of the difference of: (i) the present
11value of the automatic annual increases to a Tier 1 member's
12retirement annuity, including any increases to any annuity
13benefit payable as a result of his or her death, using the
14formula applicable to the Tier 1 member; and (ii) the present
15value of the automatic annual increases to the Tier 1 member's
16retirement annuity, including any increases to any annuity
17benefit payable as a result of his or her death, using the
18formula provided under subsection (b-5).
19    "Eligible person" means a person who:
20        (1) is a Tier 1 member;
21        (2) has submitted an application for a retirement
22    annuity under this Article;
23        (3) meets the age and service requirements for
24    receiving a retirement annuity under this Article;
25        (4) has not received any retirement annuity under this
		SB2950	- 17 -	LRB104 18850 RPS 32295 b
1    Article;
2        (5) has not made the election under Section 15-185.5;
3    and
4        (6) is not a participant in the self-managed plan
5    under Section 15-158.2.
6    "Implementation date" means the earliest date upon which
7the Board authorizes eligible persons to begin irrevocably
8electing the accelerated pension benefit payment option under
9this Section. The Board shall endeavor to make such
10participation available as soon as possible after June 4, 2018
11(the effective date of Public Act 100-587) and shall establish
12an implementation date by Board resolution.
13    (b) Beginning on the implementation date and until June
1430, 2028 [2026], the System shall implement an accelerated
15pension benefit payment option for eligible persons. The
16System shall calculate, using actuarial tables and other
17assumptions adopted by the Board, an accelerated pension
18benefit payment amount for an eligible person upon his or her
19request in writing to the System and shall offer that eligible
20person the opportunity to irrevocably elect to have his or her
21automatic annual increases in retirement annuity and any
22annuity benefit payable as a result of his or her death
23calculated in accordance with the formula provided in
24subsection (b-5) in exchange for the accelerated pension
25benefit payment. The System shall not perform more than one
26calculation under this Section per eligible person in a State
		SB2950	- 18 -	LRB104 18850 RPS 32295 b
1fiscal year. The election under this subsection must be made
2before any retirement annuity is paid to the eligible person,
3and the eligible survivor, spouse, or contingent annuitant, as
4applicable, must consent to the election under this
5subsection.
6    (b-5) Notwithstanding any other provision of law, the
7retirement annuity of a person who made the election under
8subsection (b) shall be increased annually beginning on the
9January 1 occurring either on or after the attainment of age 67
10or the first anniversary of the annuity start date, whichever
11is later, and any annuity benefit payable as a result of his or
12her death shall be increased annually beginning on: (1) the
13January 1 occurring on or after the commencement of the
14annuity if the deceased Tier 1 member died while receiving a
15retirement annuity; or (2) the January 1 occurring after the
16first anniversary of the commencement of the benefit. Each
17annual increase shall be calculated at 1.5% of the originally
18granted retirement annuity or annuity benefit payable as a
19result of the Tier 1 member's death.
20    (c) If an annuitant who has received an accelerated
21pension benefit payment returns to participation under this
22Article, the calculation of any future automatic annual
23increase in retirement annuity under subsection (c) of Section
2415-139 shall be calculated in accordance with the formula
25provided in subsection (b-5).
26    (c-5) The accelerated pension benefit payment may not be
		SB2950	- 19 -	LRB104 18850 RPS 32295 b
1repaid to the System.
2    (d) As a condition of receiving an accelerated pension
3benefit payment, the accelerated pension benefit payment must
4be deposited into a tax qualified retirement plan or account
5identified by the eligible person at the time of election. The
6accelerated pension benefit payment under this Section may be
7subject to withholding or payment of applicable taxes, but to
8the extent permitted by federal law, a person who receives an
9accelerated pension benefit payment under this Section must
10direct the System to pay all of that payment as a rollover into
11another retirement plan or account qualified under the
12Internal Revenue Code of 1986, as amended.
13    (d-5) The System shall submit vouchers to the State
14Comptroller for the payment of accelerated pension benefit
15payments under this Section. The State Comptroller shall pay
16the amounts of the vouchers from the State Pension Obligation
17Acceleration Bond Fund to the System, and the System shall
18deposit the amounts into the applicable tax qualified plans or
19accounts.
20    (e) The Board shall adopt any rules, including emergency
21rules, necessary to implement this Section.
22    (f) No provision of this Section shall be interpreted in a
23way that would cause the System to cease to be a qualified plan
24under the Internal Revenue Code of 1986.
25(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.)
		SB2950	- 20 -	LRB104 18850 RPS 32295 b
1    (40 ILCS 5/16-190.5)
2    Sec. 16-190.5. Accelerated pension benefit payment in lieu
3of any pension benefit.
4    (a) As used in this Section:
5    "Eligible person" means a person who:
6        (1) has terminated service;
7        (2) has accrued sufficient service credit to be
8    eligible to receive a retirement annuity under this
9    Article;
10        (3) has not received any retirement annuity under this
11    Article; and
12        (4) has not made the election under Section 16-190.6.
13    "Pension benefit" means the benefits under this Article,
14or Article 1 as it relates to those benefits, including any
15anticipated annual increases, that an eligible person is
16entitled to upon attainment of the applicable retirement age.
17"Pension benefit" also includes applicable survivor's or
18disability benefits.
19    (b) As soon as practical after June 4, 2018 (the effective
20date of Public Act 100-587), the System shall calculate, using
21actuarial tables and other assumptions adopted by the Board,
22the present value of pension benefits for each eligible person
23who requests that information and shall offer each eligible
24person the opportunity to irrevocably elect to receive an
25amount determined by the System to be equal to 60% of the
26present value of his or her pension benefits in lieu of
		SB2950	- 21 -	LRB104 18850 RPS 32295 b
1receiving any pension benefit. The offer shall specify the
2dollar amount that the eligible person will receive if he or
3she so elects and shall expire when a subsequent offer is made
4to an eligible person. The System shall make a good faith
5effort to contact every eligible person to notify him or her of
6the election.
7    Until June 30, 2028 [2026], an eligible person may
8irrevocably elect to receive an accelerated pension benefit
9payment in the amount that the System offers under this
10subsection in lieu of receiving any pension benefit. A person
11who elects to receive an accelerated pension benefit payment
12under this Section may not elect to proceed under the
13Retirement Systems Reciprocal Act with respect to service
14under this Article.
15    (c) A person's creditable service under this Article shall
16be terminated upon the person's receipt of an accelerated
17pension benefit payment under this Section, and no other
18benefit shall be paid under this Article based on the
19terminated creditable service, including any retirement,
20survivor, or other benefit; except that to the extent that
21participation, benefits, or premiums under the State Employees
22Group Insurance Act of 1971 are based on the amount of service
23credit, the terminated service credit shall be used for that
24purpose.
25    (d) If a person who has received an accelerated pension
26benefit payment under this Section returns to active service
		SB2950	- 22 -	LRB104 18850 RPS 32295 b
1under this Article, then:
2        (1) Any benefits under the System earned as a result
3    of that return to active service shall be based solely on
4    the person's creditable service arising from the return to
5    active service.
6        (2) The accelerated pension benefit payment may not be
7    repaid to the System, and the terminated creditable
8    service may not under any circumstances be reinstated.
9    (e) As a condition of receiving an accelerated pension
10benefit payment, the accelerated pension benefit payment must
11be transferred into a tax qualified retirement plan or
12account. The accelerated pension benefit payment under this
13Section may be subject to withholding or payment of applicable
14taxes, but to the extent permitted by federal law, a person who
15receives an accelerated pension benefit payment under this
16Section must direct the System to pay all of that payment as a
17rollover into another retirement plan or account qualified
18under the Internal Revenue Code of 1986, as amended.
19    (f) Upon receipt of a member's irrevocable election to
20receive an accelerated pension benefit payment under this
21Section, the System shall submit a voucher to the Comptroller
22for payment of the member's accelerated pension benefit
23payment. The Comptroller shall transfer the amount of the
24voucher from the State Pension Obligation Acceleration Bond
25Fund to the System, and the System shall transfer the amount
26into the member's eligible retirement plan or qualified
		SB2950	- 23 -	LRB104 18850 RPS 32295 b
1account.
2    (g) The Board shall adopt any rules, including emergency
3rules, necessary to implement this Section.
4    (h) No provision of Public Act 100-587 shall be
5interpreted in a way that would cause the applicable System to
6cease to be a qualified plan under the Internal Revenue Code of
71986.
8(Source: P.A. 101-10, eff. 6-5-19; 102-558, eff. 8-20-21;
9102-718, eff. 5-5-22.)
10    (40 ILCS 5/16-190.6)
11    Sec. 16-190.6. Accelerated pension benefit payment for a
12reduction in annual retirement annuity and survivor's annuity
13increases.
14    (a) As used in this Section:
15    "Accelerated pension benefit payment" means a lump sum
16payment equal to 70% of the difference of the present value of
17the automatic annual increases to a Tier 1 member's retirement
18annuity and survivor's annuity using the formula applicable to
19the Tier 1 member and the present value of the automatic annual
20increases to the Tier 1 member's retirement annuity using the
21formula provided under subsection (b-5) and the survivor's
22annuity using the formula provided under subsection (b-6).
23    "Eligible person" means a person who:
24        (1) is a Tier 1 member;
25        (2) has submitted an application for a retirement
		SB2950	- 24 -	LRB104 18850 RPS 32295 b
1    annuity under this Article;
2        (3) meets the age and service requirements for
3    receiving a retirement annuity under this Article;
4        (4) has not received any retirement annuity under this
5    Article; and
6        (5) has not made the election under Section 16-190.5.
7    (b) As soon as practical after June 4, 2018 (the effective
8date of Public Act 100-587) and until June 30, 2028 [2026], the
9System shall implement an accelerated pension benefit payment
10option for eligible persons. Upon the request of an eligible
11person, the System shall calculate, using actuarial tables and
12other assumptions adopted by the Board, an accelerated pension
13benefit payment amount and shall offer that eligible person
14the opportunity to irrevocably elect to have his or her
15automatic annual increases in retirement annuity calculated in
16accordance with the formula provided under subsection (b-5)
17and any increases in survivor's annuity payable to his or her
18survivor's annuity beneficiary calculated in accordance with
19the formula provided under subsection (b-6) in exchange for
20the accelerated pension benefit payment. The election under
21this subsection must be made before the eligible person
22receives the first payment of a retirement annuity otherwise
23payable under this Article.
24    (b-5) Notwithstanding any other provision of law, the
25retirement annuity of a person who made the election under
26subsection (b) shall be subject to annual increases on the
		SB2950	- 25 -	LRB104 18850 RPS 32295 b
1January 1 occurring either on or after the attainment of age 67
2or the first anniversary of the annuity start date, whichever
3is later. Each annual increase shall be calculated at 1.5% of
4the originally granted retirement annuity.
5    (b-6) Notwithstanding any other provision of law, a
6survivor's annuity payable to a survivor's annuity beneficiary
7of a person who made the election under subsection (b) shall be
8subject to annual increases on the January 1 occurring on or
9after the first anniversary of the commencement of the
10annuity. Each annual increase shall be calculated at 1.5% of
11the originally granted survivor's annuity.
12    (c) If a person who has received an accelerated pension
13benefit payment returns to active service under this Article,
14then:
15        (1) the calculation of any future automatic annual
16    increase in retirement annuity shall be calculated in
17    accordance with the formula provided in subsection (b-5);
18    and
19        (2) the accelerated pension benefit payment may not be
20    repaid to the System.
21    (d) As a condition of receiving an accelerated pension
22benefit payment, the accelerated pension benefit payment must
23be transferred into a tax qualified retirement plan or
24account. The accelerated pension benefit payment under this
25Section may be subject to withholding or payment of applicable
26taxes, but to the extent permitted by federal law, a person who
		SB2950	- 26 -	LRB104 18850 RPS 32295 b
1receives an accelerated pension benefit payment under this
2Section must direct the System to pay all of that payment as a
3rollover into another retirement plan or account qualified
4under the Internal Revenue Code of 1986, as amended.
5    (d-5) Upon receipt of a member's irrevocable election to
6receive an accelerated pension benefit payment under this
7Section, the System shall submit a voucher to the Comptroller
8for payment of the member's accelerated pension benefit
9payment. The Comptroller shall transfer the amount of the
10voucher from the State Pension Obligation Acceleration Bond
11Fund to the System, and the System shall transfer the amount
12into the member's eligible retirement plan or qualified
13account.
14    (e) The Board shall adopt any rules, including emergency
15rules, necessary to implement this Section.
16    (f) No provision of this Section shall be interpreted in a
17way that would cause the applicable System to cease to be a
18qualified plan under the Internal Revenue Code of 1986.
19(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22;
20revised 6-26-25.)
21    Section 99. Effective date. This Act takes effect upon
22becoming law.