Illinois HB 2796: PEN CD-DNST FIRE-DROP PLAN

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104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
HB2796

Introduced 2/6/2025, by Rep. Janet Yang Rohr 

SYNOPSIS AS INTRODUCED:

40 ILCS 5/4-105e new

40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109

40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1

40 ILCS 5/4-109.4 new

30 ILCS 805/8.49 new

 Amends the Downstate Firefighter Article of the Pension Code. Provides for a Deferred Retirement Option Plan, under which a firefighter who is at least age 50 with 20 years of service may continue in active service for up to 3 years while having his or her retirement pension paid into a special account, to be distributed to the firefighter upon retirement. Bases the retirement pension on the firefighter's service and salary at the time of joining the DROP plan. Requires termination of service at the end of the DROP plan participation period. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. 

LRB104 11487 RPS 21576 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

A BILL FOR

HB2796LRB104 11487 RPS 21576 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 

5Sections 4-105e and 4-109.4 and changing Sections 4-109 and 

64-109.1 as follows: 

7 (40 ILCS 5/4-105e new)

8 Sec. 4-105e. Deferred Retirement Option Plan. "Deferred 

9Retirement Option Plan" or "DROP plan" means the Deferred 

10Retirement Option Plan established under Section 4-109.3. 

11 (40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)

12 Sec. 4-109. Pension. 

13 (a) A firefighter age 50 or more with 20 or more years of 

14creditable service, who is no longer