il-v50i33-80-ill-adm-code-1540: 80 Ill. Adm. Code 1540 — The Administration and Operation of the State Employees' Retirement System of Illinois

Summary

Public Act 104-0467 was enacted on June 16, 2026, and extended the expiration date of the buyout programs by 2 years. The current rules require a member to provide the COLA buyout election application to SERS by June 1, 2026. Technically, the COLA buyout payment application is a separate application that is sent to the member after they have applied for retirement, and includes the gross payment amount which utilizes key information certified by the member's employer. The gross payment amount and additional metrics contained in the buyout application enable members to make an informed decision regarding the COLA buyout election option. This rulemaking eliminates that requirement, as such date was initially chosen by SERS without the proper foresight to anticipate that members would choose to retire right up to this application deadline to qualify for the COLA buyout payment election when there is uncertainty on whether the program will continue. Additionally, this current rule provision would conflict with the statutory eligibility criteria which grants a member who elects a retirement date that occurs before the buyout program's expiration date the right to elect or decline the COLA buyout payment option, see 40 ILCS 5/14-147.6(b). Eliminating this provision provides administrative flexibility and prevents potential administrative burdens and noncompliance. Additionally, the current rules require that a member must be eligible to retire on June 1, 2026, in order to elect an accelerated retirement benefit payment. Public Act 104-0467 was enacted on June 16, 2026, and extended the expiration date of those programs by 2 years. SERS contends that it is prudent to eliminate the actual fixed date while retaining the policy that the member must be eligible to retire on the 1 of the month in which the program expires. Finally, this rulemaking provides that if a member is eligible to purchase at least 12 months of optional service credits related to a termination refund may not purchase less than 12 months. Additionally, if such a member has less than 12 months of eligible optional service related to a termination refund, then they must purchase the full amount of optional service credit they are eligible to purchase. This provision would not apply to a member who is in the process of retiring.

The agency’s own summary, as published.