HB2910 Summary: Early Retirement Incentive Program

• Creates Section 15-136.5 for State Universities Retirement System (SURS) Tier 1 members age 55+ allowing them to elect age enhancement and additional service credit (up to 5 years each) in exchange for reduced annual benefit increases (3% or CPI-U, whichever is less).

• Creates Section 16-133.6 for Teachers' Retirement System (TRS) Tier 1 members age 55+ with similar early retirement incentive: age enhancement and additional creditable service (capped at 5 years) with reduced annual increases matching CPI-U formula.

• Requires members electing these incentives to resign from employment and accept reduced automatic annual increases for retirement and survivor benefits; members forfeiting these credits if they return to service.

• Modifies survivor benefit increase formulas under Sections 15-145 and 16-143.1 to apply CPI-U-based increases (3% or lesser CPI-U) for survivors of members who elected early retirement incentives.

• Excludes all benefit increases resulting from this Act from the definition of "new benefit increase" subject to funding requirements, and takes effect immediately upon becoming law.