HB5261 Summary: Pension Code - SERS Alternative Annuity

• Expands the definition of "State highway maintenance worker" under the alternative retirement annuity to include sign hangers and sign hanger foremen employed by the Illinois Department of Transportation and Illinois State Toll Highway Authority.

• Allows sign hangers and sign hanger foremen employed by IDOT to convert existing service credit earned under the pension code into eligible creditable service by paying the difference in employee and employer contributions plus interest.

• Creates a new subsection (q) to Section 14-110 enabling the conversion option for sign hanger positions, with payments calculated based on contribution rate differences and actuarially assumed interest rates.

• Changes to the definition apply retroactively without regard to whether members were in service on or after the effective date, but do not entitle anyone to recalculation of benefits already granted.

• Excludes these benefit changes from the definition of "new benefit increase" under Section 14-152.1, meaning they are not subject to the standard 5-year expiration requirement for new pension benefits.