IL HB3004

Creates a Deferred Retirement Option Plan (DROP) for downstate firefighters, effective January 1, 2024, allowing eligible firefighters to continue working while receiving retirement pension payments into a special account.

Eligibility requires firefighters to be at least age 50 with 20 years of creditable service and may participate for up to 3 years, with participation terminating mandatory upon plan conclusion.

Retirement pension calculation for DROP participants based on salary and service at the date of plan entry, including pension increases that would have accrued under existing law.

DROP account receives monthly retirement pension payments plus employee contributions and 7% annual interest compounded monthly; firefighter may receive balance as lump sum or actuarially equivalent annuity at retirement.

Firefighter must file irrevocable resignation letter effective at DROP plan termination, does not receive service credit during DROP participation, and salary during that period is disregarded for benefit calculations; exempts implementation from State Mandates Act reimbursement requirements.