State Retirement System of Illinois

Bruce Rauner, Governor

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State Severance Options
(Public Act #93-0839)

As a way to reduce the state employee workforce, Governor Blagojevich and the General Assembly passed Public Act 93-0839 which included two different severance options.

Alternative Retirement Cancellation Payment (Option 1)
The Alternative Retirement Cancellation Payment (ARCP) allowed SERS members to receive their retirement contributions with regular interest, times two. A total of 542 state employees participated in the ARCP.

Group 1 consisted of employees under the Governor’s jurisdiction. Approximately 23,424 of these employees were eligible to participate. These State Employees’ Retirement System (SERS) members had to file a written application by September 30, 2004 and terminate state service within two weeks after their application was approved or by October 31, whichever came first. A total of 539 Group 1 employees elected to participate in the ARCP.

Group 2 consisted of employees 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 were the same as Group 1, except that these employees had to file and terminate by October 31, 2004. Only three Group 2 agencies elected to participate: the House of Representatives-Republican Staff, the Legislative Printing Unit, and the Legislative Audit Commission. From these agencies, only three employees elected to participate.

Contingent Lump Sum Incentive Program (Option 2)
Also included in this legislation was a provision allowing the Department of Central Management Services to conduct the Contingent Lump Sum Incentive Program (Option 2) for early termination of State service. This was a separate program from the ARCP, which was adminstered by SERS.

Under Option 2, eligible state workers were offered one week's salary for each completed year of service, up to a maximum of 13 weeks salary. These employees must have applied between October 4 - 31, and terminate state service between November 1 and December 31. Both the ARCP and Option 2 were created to increase government efficiency and decrease state payroll costs and pension obligations.

Revised ARCP Statistics as of January 10, 2005

ARCP Demographics
ARCP Information
ARCP Option 1 Statistics
Most Common ARCP Positions
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