IllinoisHB5196104th General Assembly (2025–2026)HouseWALLET

PEN CD-ACCELERATED BENEFIT

Sponsored By: Sponsor information unavailable

Became Law

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, 1 costs, 2 mixed.

Lower yearly increases after buyout

If you are a Tier 1 member who takes the annual-increase reduction buyout, your yearly raise is 1.5% of your original annuity. The raise starts the later of January 1 after you turn 67 or one year after your annuity begins. The same rule can apply to survivor annuities tied to your benefit.

Pension cash-out rules and deadline

If you choose an accelerated pension payment, the money must go into a tax-qualified retirement account you name. Your system sends a voucher, the Comptroller moves funds from the State Pension Obligation Acceleration Bond Fund, and your system deposits the money into your account. You must make your election by June 30, 2026, and in some systems it must be before your first annuity payment. Your election is final. You cannot repay the lump sum to restore past service or rights. If you return to work, new benefits are based only on service you earn after you return.

State financing for pension buyouts

The state lowers its total general obligation bond cap by $1 billion. It also cuts the pension acceleration bond limit from $3.2 billion to $2.2 billion. The law creates a special fund for bond proceeds, used only for accelerated payments and to pay the bonds.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Andrew S. Chesney

    Affiliation unavailable

  • Bob Morgan

    Affiliation unavailable

  • Chris Balkema

    Affiliation unavailable

  • Janet Yang Rohr

    Affiliation unavailable

  • Jennifer Sanalitro

    Affiliation unavailable

  • Li Arellano, Jr.

    Affiliation unavailable

  • Martha Deuter

    Affiliation unavailable

  • Matt Hanson

    Affiliation unavailable

  • Nicolle Grasse

    Affiliation unavailable

  • Robert F. Martwick

    Affiliation unavailable

  • Sara Feigenholtz

    Affiliation unavailable

  • Stephanie A. Kifowit

    Affiliation unavailable

  • Steven Reick

    Affiliation unavailable

  • Suzy Glowiak Hilton

    Affiliation unavailable

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

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

Yes: 11 • No: 0

House vote 4/16/2026

Third Reading - Short Debate - Passed

Yes: 109 • 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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