SB3652 Summary

• Amends Section 7-141.1 of the Illinois Pension Code to allow local government employers to establish early retirement incentive programs for Illinois Municipal Retirement Fund (IMRF) employees.

• Eligible employees must be age 50 (Tier 1) or age 57 (Tier 2) with at least 20 years of creditable service; participants can establish up to 5 years of additional creditable service with corresponding age enhancement.

• Retirees who accept employment or personal services contracts with any IMRF employer forfeit early retirement incentives and must repay a portion of benefits already received.

• Employers are encouraged to prohibit rehiring (for at least 5 years) of employees receiving early retirement incentives and to limit replacement employee salaries to no more than 80% of former participants' salaries.

• Additional unfunded liabilities from early retirement programs must be amortized over 10 years (or shorter period of no less than 5 years if employer elects), with employers able to provide only one program until previous liabilities are fully paid.