HB2902 Summary: Pension Buyout Act

• Authorizes the Department of Central Management Services to contract with approved vendors to provide lump sum payments to eligible retirees in State Universities Retirement System (SURS) and Teachers' Retirement System (TRS) in exchange for relinquishing all pension rights and benefits.

• Requires the Illinois Finance Authority to issue bonds up to $500 million if annual appropriations are insufficient to cover pension buyout payments, with proceeds used solely for paying approved vendors.

• Establishes Tier 3 and Tier 4 defined contribution plans allowing active Tier 1 and Tier 2 members in SURS and TRS to voluntarily cease accruing defined benefits and instead contribute to individual accounts with variable employer contributions.

• Requires approved vendors to provide certified financial planning services at no cost to eligible retirees, and ensures pension buyout participants remain eligible for State Employees Group Insurance Act benefits as annuitants.

• Makes all mandate implementation costs exempt from State reimbursement requirements under the State Mandates Act and takes effect immediately upon becoming law.