Illinois 100th Regular Session Status: In Committee 1 D cosponsors

SB 662 — PEN CD-PENSION BUYOUT OPTION

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 100th Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Creates the Pension Buyout Act. Authorizes the Department of Central Management Services to enter into contracts with approved vendors to provide pension buyout payments to eligible retirees in the General Assembly, State Employee, State Universities, and Judges Retirement Systems. Requires the Illinois Finance Authority to issue bonds if the amount appropriated to implement the pension buyout option is less than the amount necessary for the Department to pay the approved vendor the amount required under a contract between the Department and the approved vendor for any fiscal year. Provides that the contract entered into by the Department shall be subject to the applicable requirements of the Illinois Procurement Code. Amends the General Assembly, State Employee, State Universities, and Judges Articles of the Illinois Pension Code. Provides that an eligible retiree may relinquish his or her right to receive any benefits from the system in exchange for a lump sum payment made by an approved vendor that is equal to the present value of the retirement annuity. Provides that a person who participates in the pension buyout option shall be entitled to any benefits under the State Employees Group Insurance Act of 1971 that he or she would have otherwise been entitled to. Contains provisions concerning the form of the contract; rulemaking; notice to the System; certification to the Department of the amount of lump sum payments made; and qualified plan status. Amends the State Employees Group Insurance Act of 1971, the Department of Central Management Services Law of the Civil Administrative Code of Illinois, the Illinois Procurement Code, and the Illinois Finance Authority Act to make related changes. Effective July 1, 2018.

Bill Text

How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill creates the Pension Buyout Act allowing eligible retirees to receive lump sum buyout payments from approved vendors in exchange for relinquishing their pension benefits.

  • 5 ILCS 375/3

    including an employee who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 2-154.5 of that Article → including an employee who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 2-154.5 of that Article

    This change clarifies that retirees can opt for the pension buyout option while still being covered under the State Employees Group Insurance Act.

  • 5 ILCS 375/3

    including an employee who has elected to receive an alternative retirement cancellation payment under Section 14-108.5 of the Illinois Pension Code in lieu of an annuity or who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 14-147.5 of that Article → including an employee who has elected to receive an alternative retirement cancellation payment under Section 14-108.5 of the Illinois Pension Code in lieu of an annuity or who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 14-147.5 of that Article

    This inclusion reaffirms retirees' rights to choose between an alternative retirement payment and the pension buyout option.

  • 5 ILCS 375/3

    including an employee who has retired under the optional retirement program established under Section 15-158.2 or who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 15-185.5 of the Article → including an employee who has retired under the optional retirement program established under Section 15-158.2 or who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 15-185.5 of the Article

    This ensures that those in the optional retirement program can also consider the buyout option.

  • 5 ILCS 375/3

    including an employee who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 16-190.5 of the Illinois Pension Code → including an employee who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 16-190.5 of the Illinois Pension Code

    This allows those who have opted for the buyout under Section 16-190.5 to receive necessary benefits.

  • 5 ILCS 375/3

    including an employee who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 18-161.5 of that Article → including an employee who, in lieu of receiving an annuity under that Article, has elected to participate in the pension buyout option under Section 18-161.5 of that Article

    This inclusion confirms that participants in this section can exercise the buyout option.

Action History

  1. Session Sine Die

  2. Rule 3-9(a) / Re-referred to Assignments

  3. Rule 2-10 Committee Deadline Established As May 5, 2017

  4. Rule 2-10 Committee Deadline Established As April 7, 2017

  5. To Subcommittee on Pensions

  6. Assigned to Executive

  7. Referred to Assignments

  8. First Reading

  9. Filed with Secretary by Sen. Michael E. Hastings

Sponsors

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on

Sponsors (0)

None.

Co-sponsors (1)

Not signed on (182)

182 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 662 do?
Creates the Pension Buyout Act. Authorizes the Department of Central Management Services to enter into contracts with approved vendors to provide pension buyout payments to eligible retirees in the General Assembly, State Employee, State Universities, and Judges Retirement Systems. Requires the Illinois Finance Authority to issue bonds if the amount appropriated to implement the pension buyout option is less than the amount necessary for the Department to pay the approved vendor the amount required under a contract between the Department and the approved vendor for any fiscal year. Provides that the contract entered into by the Department shall be subject to the applicable requirements of the Illinois Procurement Code. Amends the General Assembly, State Employee, State Universities, and Judges Articles of the Illinois Pension Code. Provides that an eligible retiree may relinquish his or her right to receive any benefits from the system in exchange for a lump sum payment made by an approved vendor that is equal to the present value of the retirement annuity. Provides that a person who participates in the pension buyout option shall be entitled to any benefits under the State Employees Group Insurance Act of 1971 that he or she would have otherwise been entitled to. Contains provisions concerning the form of the contract; rulemaking; notice to the System; certification to the Department of the amount of lump sum payments made; and qualified plan status. Amends the State Employees Group Insurance Act of 1971, the Department of Central Management Services Law of the Civil Administrative Code of Illinois, the Illinois Procurement Code, and the Illinois Finance Authority Act to make related changes. Effective July 1, 2018.
Who sponsors SB 662?
SB 662 is sponsored by Michael E. Hastings (Democrat).
What is the current status of SB 662?
This bill died with 100th Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 662?
Track SB 662 free on One Click Politics — get push/email alerts when it moves.

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