HB 6145

Abstract

Amends the Illinois Pension Code. With respect to the 5 State-funded Retirement Systems: requires each System to prepare and implement a Tier 3 plan by July 1, 2017 that aggregates State and employee contributions in individual participant accounts which are used for payouts after retirement. Provides that a Tier 1 or Tier 2 participant may irrevocably elect to participate in the Tier 3 plan instead of the defined benefit plan. Authorizes a Tier 1 or Tier 2 participant to elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account under the Tier 3 plan. Until July 1, 2018, authorizes certain Tier 1 participants to elect to have the automatic annual increases in retirement annuity and survivor's annuity calculated using the Tier 2 formula and to have a specified amount credited to his or her account under the Tier 3 plan. Requires each System to report on its progress in establishing the Tier 3 plan to the Governor and the General Assembly by January 15, 2017. Provides that "new benefit increase" does not include any benefit increase resulting from the changes made by the amendatory Act. Repeals certain provisions concerning a defined contribution plan added by Public Act 98-599. In the Downstate Teachers, State Employees, and State Universities Articles, authorizes a person to elect not to participate or to terminate his or her participation in those Systems. In the General Assembly and Judges Articles, authorizes a participant to terminate his or her participation in the System. Makes related changes in the Retirement Systems Reciprocal Act (Article 20 of the Code) and the State Employees Group Insurance Act of 1971. Effective immediately.