SPRINGFIELD – Illinois Senate Democrats applaud a new law, which will extend the pension buyout option for state employees to 2026. The bill will strengthen pensions and save taxpayer money.

“The savings generated by the pension buyout program is a big point of pride for me,” said State Senator Robert Martwick (D-Chicago). “I am glad that we put aside our different ideas and worked together to find a bi partisan solution for the state’s most persistent and crippling financial problem. When Democrats and Republicans work together on these core financial issues, every Illinoisan benefits.”

The new law, formerly known as HB 4292, will ensure fiscal responsibility and reduce overall liability costs placed on taxpayers. It follows the inclusion of an additional $500 million contribution to the retirement systems in the last two state budgets.

“A pension is a promise, and we have an obligation to keep that promise to our state employees,” said Senator Doris Turner (D-Springfield). “This new law keeps us on that path and ensures that not only our state employees, but also our taxpayers will benefit from having additional money for other programs.”

The bipartisan expansion of the buyout option honors the commitments made to state employees while giving them the flexibility to spend pension dollars when needed. State employees, downstate teachers, and university employees who meet certain eligibility requirements at retirement may opt for an accelerated pension benefit payment in exchange for forfeiting a portion of future cost-of-living increases on retirement benefits. Over 4,500 state and university employees and teachers have already opted for the buyout.

HB 4292 was signed into law on May 5, and takes effect immediately.