TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER III: TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS
PART 1650 THE ADMINISTRATION AND OPERATION OF THE TEACHERS' RETIREMENT SYSTEM
SECTION 1650.3320 ACCELERATED PENSION BENEFIT BUYOUT PROGRAM
Section 1650.3320 Accelerated Pension Benefit Buyout Program
a) Each year of the APB program, the System will notify all known eligible terminated members about the buyout and instructions for electing the APB buyout and the dates of the applicable election window, unless the member was notified in a prior year. It is the member's responsibility to comply with all TRS instructions and requirements to achieve a valid election. A member may not revoke the election after the close of the applicable election window.
1) During the first year of the program, i.e., calendar year 2019, eligible members receiving an offer will have 180 days from the date of the notification to elect the buyout. An otherwise eligible member who fails to elect the APB during that year's election window must contact the System to be included in any subsequent year's election window.
2) During the second year of the program, i.e., calendar year 2020, eligible members receiving an offer will have 180 days from the date of the notification to elect the buyout. An otherwise eligible member who fails to elect the APB during that year's election window must contact the System to be included in the subsequent year's election window.
3) During the third year of the program, i.e., January 1 through June 30, 2021, eligible members receiving an offer will have 90 days from the date of the notification to elect the buyout.
4) If the actual amount of APB buyout payment is less than the amount of the offer by a factor of 10% or more, the member may withdraw the election before the applicable election window closes and revert to the provisions of Article 16 that would apply in the absence of the APB buyout election.
b) The APB buyout payment will be calculated as follows:
1) Calculate the member's monthly retirement benefit under the applicable provisions of Article 16 at the member's earliest retirement age based on the member's service credit as of June 30 of the applicable calendar year. If the member is eligible for an actuarial benefit under Section 16-133(a)(A), the retirement benefit will be calculated as of June 30 of the same calendar year as the applicable election window.
2) Multiply the result by the applicable 60% of Monthly Benefit Factor.
c) A member's APB election will be canceled prior to issuance of the buyout payment and any benefits or refunds due the member or the member's designated beneficiaries will be calculated according to the provisions of Article 16 that would apply in the absence of the buyout election, when any of the following events occur:
1) The member has not complied with all requirements to constitute a valid election by the expiration of the APB program on June 30, 2021.
2) The member dies after electing the APB but prior to issuance of the buyout payment.
3) A Required Minimum Distribution (RMD) is payable to the member in accordance with federal law.
4) The System determines the member is ineligible to participate in the buyout program.
5) The member withdrew the election as provided in this Section.
d) The calculation of the APB buyout payment becomes final once payment is issued and will not be adjusted for any reason.
(Source: Added at 43 Ill. Reg. 5115, effective April 22, 2019)