HB0315 Summary

• Authorizes eligible pension system members (General Assembly, State Employees, State Universities, Downstate Teachers, and Judges systems) to elect an accelerated lump-sum pension benefit payment equal to 70% of the net present value of their future pension benefits instead of receiving traditional retirement annuities.

• Election period runs from January 1, 2018 to July 1, 2018; eligible persons must have terminated service, accrued sufficient service credit for retirement, and have no QILDROs in effect.

• Service credits terminate upon receipt of the accelerated payment and cannot be reinstated, though terminated service credit counts toward health insurance eligibility under the State Employees Group Insurance Act of 1971.

• Authorizes $250,000,000 in State Pension Obligation Acceleration Bonds to fund accelerated payments exceeding appropriated amounts, with bond repayment as a continuing appropriation.

• Requires pension system boards to calculate net present values using actuarial tables and make good-faith efforts to contact eligible members with election offers by January 1, 2018.