Optional Pension Buyout Programs
During the 2018 budget process, the Illinois General Assembly passed a law that created two voluntary pension buyout options – the Vested Inactive Buyout and the Tier I Automatic Annual Increase (AAI) Buyout – for SURS members who meet certain criteria. The buyouts are available to eligible members through June 30, 2026.
Tier I Automatic Annual Increase (AAI) Buyout
The Tier I AAI Buyout, which will be available to retiring SURS members from July 1, 2019, through June 30, 2026, provides a Tier I member with an optional lump-sum buyout payment at retirement in exchange for a permanently reduced and delayed AAI.The final election to retire with the Tier I AAI Buyout and waive the 3 percent compounded AAI is irrevocable.
Vested Inactive Buyout
The Vested Inactive Buyout is an option to receive a total lump-sum buyout instead of any pension benefit otherwise payable from SURS. This buyout will be available to SURS members who meet the eligibility requirements during the period July 1, 2019, through June 30, 2026.
QILDROs and Buyouts
In cases where the rights of an alternate payee under a Qualified Illinois Domestic Relations Order (QILDRO) might be affected by a buyout, the QILDRO parties must obtain a stipulated court order that specifies how the buyout is to be divided, if at all.