IL SB3280

Creates accelerated pension benefit payment options effective January 1, 2017, allowing eligible members to receive a one-time lump sum equal to 75% of the present value of their retirement annuity instead of monthly payments across five state pension systems (General Assembly, State Employees, State Universities, Downstate Teachers, and Judges).

Provides partial accelerated payment alternative where members can elect a percentage reduction in retirement annuity in exchange for a lump sum equal to 75% of that elected percentage, with minimum payment of $50,000.

Terminates service credits and creditable service upon receipt of accelerated payment, though terminated service credit counts toward State Employees Group Insurance Act eligibility and participation.

Allows members who return to service after receiving accelerated payments to earn new benefits based only on subsequent service; prohibits repayment of the accelerated benefit and reinstatement of terminated credits.

Permits rollover of accelerated benefit payments into qualified retirement accounts under Internal Revenue Code and bars recipients from proceeding under the Retirement Systems Reciprocal Act.