IllinoisHB5196104th General Assembly (2025–2026)HouseWALLET

PEN CD-ACCELERATED BENEFIT

Sponsored By: Sponsor information unavailable

Signed by Governor

Summary

Amends the General Obligation Bond Act. Authorizes an additional $1,000,000,000 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, 2030 (instead of June 30, 2026). Effective immediately.

personnel & pensionsassignmentspensions

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Former public workers get pension buyout choice

Through June 30, 2028, some former members of the Article 14, 15, and 16 retirement systems can choose a one-time payment. They must have left service, have enough service credit for an annuity, and not have received one. The payment is 60% of the pension benefits’ estimated value today, and the choice replaces any pension benefit. The money goes to a qualified retirement account; Article 16 service credit generally cannot support further Article 16 benefits, and reciprocal-system treatment is unavailable.

Illinois expands borrowing for pension payments

Illinois raises its total general bond authorization by $1 billion, to about $83.7 billion, and authorizes $3.2 billion in bonds for accelerated pension payments. After sale expenses, the bond money goes to a fund for those payments or for principal and interest on the bonds. The law also excludes bonds authorized by this act, Public Act 104-8, and specified earlier laws when calculating debt service under the 7% limit for the next state fiscal year. This gives the state more room to issue those bonds, while adding borrowing and repayment obligations.

Pension members trade raises for lump sums

Through June 30, 2028, eligible members of the Article 14, 15, and 16 systems can choose accelerated pension payments before their first annuity payment. For eligible Tier 1 members in Articles 14 and 16, the lump sum is 70% of a specified difference in estimated values. In exchange, future annuity increases use a reduced formula based on 1.5% of the original annuity; for Article 14 members, increases start at age 67 or one year after payments begin, whichever is later. The university system’s option also uses 1.5% of the original annuity; the payment amount is not stated here, and any required survivor, spouse, or contingent annuitant must agree.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Andrew S. Chesney

    Republican • Senate

  • Bob Morgan

    Democratic • House

  • Chris Balkema

    Republican • Senate

  • Janet Yang Rohr

    Democratic • House

  • Jennifer Sanalitro

    Republican • House

  • Li Arellano, Jr.

    Republican • Senate

  • Martha Deuter

    Democratic • House

  • Matt Hanson

    Democratic • House

  • Nicolle Grasse

    Democratic • House

  • Robert F. Martwick

    Democratic • Senate

  • Sara Feigenholtz

    Democratic • Senate

  • Stephanie A. Kifowit

    Democratic • House

  • Steven Reick

    Republican • House

  • Suzy Glowiak Hilton

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 196 • No: 0

Senate vote • 5/29/2026

Third Reading - Passed;

Yes: 56 • No: 0

Senate vote • 5/27/2026

Do Pass Pensions;

Yes: 10 • No: 0

House vote • 4/16/2026

Third Reading - Short Debate - Passed

Yes: 109 • No: 0

House vote • 4/16/2026

House Floor Amendment No. 2 Recommends Be Adopted Personnel & Pensions Committee;

Yes: 11 • No: 0

House vote • 3/20/2026

Do Pass as Amended / Short Debate Personnel & Pensions Committee;

Yes: 10 • No: 0

Actions Timeline

  1. Public Act . . . . . . . . . 104-0467

    6/16/2026House
  2. Effective Date June 16, 2026

    6/16/2026House
  3. Governor Approved

    6/16/2026House
  4. Sent to the Governor

    6/10/2026House
  5. Passed Both Houses

    5/29/2026House
  6. Third Reading - Passed; 056-000-000

    5/29/2026Senate
  7. 3/5 Vote Required

    5/29/2026Senate
  8. Added as Alternate Co-Sponsor Sen. Chris Balkema

    5/29/2026Senate
  9. Added as Alternate Co-Sponsor Sen. Suzy Glowiak Hilton

    5/29/2026Senate
  10. Added as Alternate Co-Sponsor Sen. Li Arellano, Jr.

    5/29/2026Senate
  11. Placed on Calendar Order of 3rd Reading May 29, 2026

    5/28/2026Senate
  12. Second Reading

    5/28/2026Senate
  13. Added as Alternate Co-Sponsor Sen. Sara Feigenholtz

    5/28/2026Senate
  14. Placed on Calendar Order of 2nd Reading

    5/27/2026Senate
  15. Do Pass Pensions; 010-000-000

    5/27/2026Senate
  16. Rule 2-10 Committee/3rd Reading Deadline Established As May 31, 2026

    5/22/2026Senate
  17. Assigned to Pensions

    5/19/2026Senate
  18. Rule 2-10 Committee Deadline Established As May 22, 2026

    5/19/2026Senate
  19. Added as Alternate Chief Co-Sponsor Sen. Andrew S. Chesney

    4/30/2026Senate
  20. Alternate Chief Sponsor Changed to Sen. Robert F. Martwick

    4/30/2026Senate
  21. Referred to Assignments

    4/21/2026Senate
  22. First Reading

    4/21/2026Senate
  23. Chief Senate Sponsor Sen. Andrew S. Chesney

    4/21/2026Senate
  24. Placed on Calendar Order of First Reading

    4/21/2026Senate
  25. Arrive in Senate

    4/21/2026Senate

Bill Text

  • Engrossed

  • Enrolled

  • House Amendment 1

  • House Amendment 2

  • Introduced

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