Illinois HB 2765: PROC-TECHNOLOGY OVERSIGHT

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104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
HB2765

Introduced 2/6/2025, by Rep. Jackie Haas 

SYNOPSIS AS INTRODUCED:

40 ILCS 5/16-207 new

40 ILCS 5/Art. 25 heading new

40 ILCS 5/25-5 new

40 ILCS 5/25-10 new

 Amends the Illinois Pension Code. Creates the Deferred Retirement Option Article. Provides a deferred retirement option plan (DROP) for certain participants under the Downstate Teacher Article who are eligible to retire and meet other criteria. Provides that a participant in the DROP may elect to participate for up to 5 years. Provides that on the effective date of the member's election, the System shall credit the member's account on a monthly basis, for as long as the member participates in the DROP, an amount equal to the monthly amount of retirement annuity the member would otherwise be eligible to receive had the member retired on the date of the election. Provides that the DROP member shall be considered in active service for purposes of participation in a collective bargaining agreement, for health care benefits, and for other purposes. Establishes a DROP administered by the State Treasurer for pension funds or retirement systems that are required to establish a DROP and elect to transfer administrative responsibility for the DROP to the State Treasurer. Sets forth provisions concerning interest on the account; termination of the DROP; contributions; administrative costs; and a DROP advisory board. Effective immediately.

LRB104 11963 RPS 22056 b

A BILL FOR

HB2765LRB104 11963 RPS 22056 b

1 AN ACT concerning public employee benefits.

2 Be it enacted by the People of the State of Illinois, 

3represented in the General Assembly:

4 Section 5. The Illinois Pension Code is amended by adding 

5Section