Governor Blagojevich has signed Public Act #93-0839 allowing State employees to receive an Alternative Retirement Cancellation Payment (ARCP) consisting of a lump sum payment of their contributions with regular interest, times two.
Also included in the legislation is a provision allowing the Department of Central Management Services tocreate the Contingent Lump Sum Incentive Program for early termination of State service. This is a separate program that may or may not be offered. Any employee interested in or considering the plan which may be offered by CMS is urged to view important information posted on the CMS website: www.state.il.us/cms.
To participate in the SERS portion of the legislation (the Alternative Retirement Cancellation Payment) a member must fall within the two groups listed below.
Have continuous employment on and after January 1, 2004.
Be in a specific job title.
Be among the first 3,000 employees to file a written application before September 30, 2004.
If the member has a Qualified Illinois Domestic Relations Order (QILDRO) in effect, the member must have a consent to participate from all alternate payees.
Terminate employment within two weeks after approval of their application or no later than October 31, whichever comes first.
During August 2004, all members eligible to participate should receive an estimate of the amount payable to them, and an application to participate from SERS.
To view the eligible job titles in Group 1, click here.
To be eligible in Group 2, SERS members in any position with the Speaker of the House of Representatives, the Minority Leader of the House, the President of the Senate, the Minority Leader of the Senate, the Attorney General, the Secretary of State, the Comptroller, the Treasurer, the Auditor General, the Supreme Court, the Court of Claims and all legislative agencies are eligible to participate, with the approval of their agency head.
The eligibility requirements are the same as Group 1, except that they must file and terminate by October 31, 2004. There is no limit to the number of employees who can participate in this group. They will receive an estimate after September 1, 2004.
All ARCP (severance plan) participants will receive a one-time lump sum payment equal to their contributions with regular interest, times two. The taxable portion of the lump sum amount may be rolled over into a qualified employer plan that accepts rollovers, or to a traditional Individual Retirement Account (IRA).
Participants in the Alternative Retirement Cancellation Payment Plan (severance plan) would be eligible for insurance coverage on the date they would have been eligible to retire using their service on the date of the ARCP if they are vested (8 years of service credit) with the State. For example, if a member terminates at age 27 with 9 years of service, he would be eligible for State insurance on the first of the month after reaching age 60.
To view the eligible job titles in Group 2, click here.
To view the Alternative Retirement Cancellation Payment (severance plan) legislation, click here. (In House Amendment 002 section 232 )
To view the Alternative Retirement Cancellation Payment (severance plan) overview, click here.