IL HB2920

Creates a Deferred Retirement Option Plan (DROP) for State Universities Retirement System (SURS) participants who are eligible for full retirement but wish to continue working for up to 5 years

Eligible members must elect to participate by January 1, 2029, and all DROP participation must end by January 1, 2034; the election is irrevocable once made

During DROP participation, monthly retirement annuity amounts are deposited into a notional account that does not accrue interest; administrative costs are deducted from the account balance

DROP members continue making regular employee contributions to the pension system during participation, with those amounts credited to their DROP account minus administrative costs

Upon termination or expiration of DROP participation, members receive their account balance as a lump sum, must begin receiving their retirement annuity, and are permanently prohibited from returning to employment that would require active pension system membership