APB lump‑sum option explained as TRS program’s June 30, 2026 sunset approaches

Sandy Benhart, outreach coordinator with the Teachers' Retirement System (TRS), told inactive TRS members at a webinar that the Accelerated Pension Benefit (APB) lets eligible members choose a one‑time lump sum in place of a lifetime monthly pension.

The APB was created in the 2019 fiscal process and signed into law; TRS calculates the lump sum as 60% of the present value of the member's anticipated lifetime pension. Benhart said the program "as we have it right now is set to expire June 30th of 2026," and noted the application deadline for the currently available round was April 4, 2026.

Why it matters: electing APB is irrevocable. TRS stressed that members should weigh the upfront payment against lifetime monthly payouts and other benefits such as survivor coverage that are forfeited with APB. Benhart summarized the trade‑offs and the mechanics used to produce APB offers.

Details of the calculation and eligibility TRS uses statutory retirement formulas (service credit × formula factor × final average salary) to estimate lifetime pension amounts and produces APB offers from a present‑value calculation. Benhart said an additional actuarial calculation applies for members who first contributed before the 2005–06 fiscal year; that actuarial result can sometimes be higher than a simple formula and TRS will automatically use the higher amount when applicable.

TRS told members it used a 7% assumed rate of return to estimate actuarial values for longer‑range retirements; Benhart said the system will re‑run actuarial numbers and "true up" the estimate as a member’s retirement date approaches. She also reiterated that taking APB terminates previously accrued TRS service credit permanently, though it does not change a member’s tier (which is fixed by the date the member first contributed to an Illinois pension system).

What applicants should know now Benhart advised members that the APB application must be notarized and that choices about how to receive proceeds include a check (TRS will withhold 20% for federal taxes), a direct rollover to an eligible retirement plan (no withholding), or a combination. She emphasized the decision is irrevocable: "Once we get it, we will proceed to process it. And at that point, you cannot change your mind." The webinar also reiterated TRS’s deadline and that the legislature could extend the program but had not yet done so.

The webinar closed by urging members with individual questions to set a TRS appointment for a detailed, account‑specific review.