SPRINGFIELD — State Senator Robert Martwick’s measure to extend the highly successful Accelerated Pension Benefit Program has passed.
“Public employees dedicate years of service to our communities and programs like the Accelerated Pension Benefit Program help provide additional retirement planning tools and stability,” said Martwick (D-Chicago). “Continuing the program reflects a commitment to honoring workers while responsibly managing pension obligations.”
House Bill 5196 authorizes $1 billion in state pension obligation acceleration bonds, which will extend the program, more commonly known as the COLA Buyout Program, for an additional two years, through June 30, 2028.
Under the COLA Buyout Program, participants in State Employees’ Retirement System, State Universities Retirement System or Teachers’ Retirement System may voluntarily receive a lump-sum payment in exchange for forgoing future 3% compounded cost-of-living adjustments or a pension buy-out for members who have a vested pension but are no longer active members of SERS, SURS or TRS.
To date, the program has reduced Illinois’ pension liabilities by an estimated $2.6 to $2.9 billion.
House Bill 5196 passed the Senate Friday.
