# Illinois HB2765: PEN CD-DEFERRED RETIRE OPTION

Illinois HB2765, PEN CD-DEFERRED RETIRE OPTION, is a 104th General Assembly (2025–2026) House bill sponsored by Jackie Haas (Republican); status in committee, last action 2026-03-27 (Rule 19(a) / Re-referred to Rules Committee) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/IL-HB2765-2025-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Illinois HB2765
- State: Illinois
- Session: 104th General Assembly (2025–2026)
- Title: PEN CD-DEFERRED RETIRE OPTION
- Status: in committee
- Chamber: House
- Introduced: 2025-02-05
- Last action: 2026-03-27, Rule 19(a) / Re-referred to Rules Committee
- Sponsor: Jackie Haas (Republican)
- Cosponsors: 0
- Subjects: appropriations-pensions & personnel
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Amends the Illinois Pension Code. Creates the Deferred Retirement Option Article. Provides a deferred retirement option plan (DROP) for certain participants under the Downstate Teacher Article who are eligible to retire and meet other criteria. Provides that a participant in the DROP may elect to participate for up to 5 years. Provides that on the effective date of the member's election, the System shall credit the member's account on a monthly basis, for as long as the member participates in the DROP, an amount equal to the monthly amount of retirement annuity the member would otherwise be eligible to receive had the member retired on the date of the election. Provides that the DROP member shall be considered in active service for purposes of participation in a collective bargaining agreement, for health care benefits, and for other purposes. Establishes a DROP administered by the State Treasurer for pension funds or retirement systems that are required to establish a DROP and elect to transfer administrative responsibility for the DROP to the State Treasurer. Sets forth provisions concerning interest on the account; termination of the DROP; contributions; administrative costs; and a DROP advisory board. Effective immediately.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Jackie Haas (Republican), House

## Actions (7)

- 2026-03-27: Rule 19(a) / Re-referred to Rules Committee (House)
- 2026-02-24: Assigned to Appropriations-Pensions & Personnel (House)
- 2025-03-21: Rule 19(a) / Re-referred to Rules Committee (House)
- 2025-03-04: Assigned to Appropriations-Pensions & Personnel (House)
- 2025-02-06: Referred to Rules Committee (House)
- 2025-02-06: First Reading (House)
- 2025-02-05: Filed with the Clerk by Rep. Jackie Haas (House)

## Bill text

- Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB2765.pdf)

## Related bills

- HB5198: AFFORDABLE HOUSING-CILAS (passed house)
- SB1937: PENSION CODE-VARIOUS (passed senate)
- HB2563: CONDO-RESERVE STUDY (in committee)
- HB4701: LIMITATIONS FACILITY FEES ACT (in committee)
- SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate)
- SB3484: VEH CD-PLATES-REGISTRATION (signed)

## Sources
- [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB2765.pdf)

## Related
- [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026)
- [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026)
- [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026)
- [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026)
- [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026)
- [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026)
- [Illinois bills](https://policyrisk.com/states/illinois/bills)
- [Illinois state hub](https://policyrisk.com/states/illinois)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/IL-HB2765-2025-2026 (as of 2026-11-01).