HB2765

Establishes a Deferred Retirement Option Plan (DROP) for eligible Illinois pension fund or retirement system participants.

The bill creates a Deferred Retirement Option Plan (DROP) for eligible Illinois pension fund or retirement system participants. Eligible members can elect to participate in the DROP for up to five years. During this period, the retirement system credits a notional account with an amount equal to the monthly retirement annuity the member would have received had they retired on the election date. The account earns interest annually at the 10-year Treasury rate. The State Treasurer administers the DROP, which must be made available by July 1, 2028.