HB4427 Summary

• Allows eligible terminated employees in five state pension systems (General Assembly, State Employees, State Universities, Downstate Teachers, and Judges) to elect an accelerated lump sum pension benefit payment equal to 75% of their retirement annuity's present value, effective January 1, 2017.

• Permits partial accelerated payments where employees can reduce their retirement annuity by a specified percentage to receive 75% of that reduced amount as a lump sum, with a minimum payment floor of $50,000.

• Terminates all service credits and creditable service upon receipt of the accelerated payment, except that terminated service credit counts toward eligibility for group health insurance benefits under the State Employees Group Insurance Act of 1971.

• Prohibits employees who receive accelerated payments from using the Retirement Systems Reciprocal Act and prevents repayment of the accelerated benefit or reinstatement of terminated service credits under any circumstances.

• Allows accelerated payments to be rolled over into other qualified retirement plans under the Internal Revenue Code, subject to applicable tax withholding.