HB 5872

Abstract

Amends the General Assembly, State Employee, Downstate Teacher, and Judges Articles of the Illinois Pension Code. Requires the retirement systems to each establish and administer a self-managed plan that shall offer participants the opportunity to accumulate assets for retirement through a combination of participant and State contributions that may be invested in mutual funds, collective investment funds, or other investment products and used to purchase annuity contracts, either fixed or variable or a combination of fixed and variable. Provides that, for a member who first becomes a member after January 1, 2011, for a member of the State Employees' Retirement System of Illinois who becomes employed in a double-exempt position after January 1, 2011, and for a member of the Teachers' Retirement System of the State of Illinois who becomes employed in a contractual position with the governing board after January 1, 2011, any portion of the member's yearly salary that exceeds the Social Security Covered Wage Base for that year shall be subject to the self-managed plan. Makes related changes. Effective immediately.