IL HB5196

Authorizes an additional $1,000,000,000 in State Pension Obligation Acceleration Bonds, increasing the total authorization from $2,200,000,000 to $3,200,000,000

Extends the deadline for eligible participants to elect an accelerated pension benefit payment from June 30, 2026 to June 30, 2030

Applies to participants in the State Employees (Article 14), State Universities (Article 15), and Downstate Teachers (Article 16) pension systems

Allows eligible participants to receive either 60% of the present value of their pension benefits as a lump sum in lieu of any future pension, or 70% of the difference in present value when accepting reduced annual increases (1.5% instead of the standard formula)

Requires accelerated pension benefit payments to be transferred into a tax-qualified retirement plan or account as a rollover