SPRINGFIELD (WSIL) -- Governor JB Pritzker signed House Bill 4292 into law Thursday.Â
The law would extend the pension buyout option for state employees to 2026.
The bill authorizes $1 billion in additional general obligation bond funding to extend the buyout program.
“The expansion of this bipartisan pension buyout program builds on Democratsâ€� work this session to save taxpayers nearly $2 billion in pension liabilities by paying down our pension debt in advance.â€� said Pritzker.Â
“When legislators of both parties can come together on a plan to save taxpayers money by reducing the state’s pension shortfall, this is an occasion to celebrate,� said Illinois State Comptroller Susana A. Mendoza. “This is yet another example � along with a billion dollars for the Rainy Day Fund and half-a-billion in additional pension payments � that show Illinois is saving, not spending, and earning credit upgrades.�
State employees will now have the opportunity to opt for a pension buyout for an additional two years, through June 30, 2026. $1 billion in bond authorization was approved to fund these buyouts. Previously the buyouts were offered only through June of 2024.
Governor Pritzker’s FY2023 budget authorized an extra $500 million payment to the state pension fund beyond the required annual contribution to reduce overall pension liabilities. The additional payment will save taxpayers an estimated $1.8 billion.
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.
