SB 3278

Abstract

Amends the General Assembly Article of the Illinois Pension Code. Defines "Tier 3 participant" as a participant who first becomes a participant on or after January 1, 2017. Requires the General Assembly Retirement System to establish, by July 1, 2016, a defined contribution plan for all Tier 3 participants. Provides that no Tier 3 participant shall be eligible to participate in the retirement plan available to Tier 1 and Tier 2 participants. Requires the System to report its progress in establishing the defined contribution plan to the Governor and the General Assembly on or before January 15, 2016. Provides that the Illinois State Board of Investment shall be the plan sponsor for the defined contribution plan. Provides that the System, its staff, its authorized representatives, and the Board of Trustees of the System shall not be liable for any information given to a Tier 3 participant concerning the defined contribution plan. Requires the defined contribution plan to provide a variety of options for payouts to retirees and their survivors. Requires the defined contribution plan to allow former participants in the plan to transfer or roll over Tier 3 participant contributions and vested State contributions into other qualified retirement plans. Contains provisions concerning maximum participant and State contributions, vesting, defined disability benefits, investment options, administrative fees, and qualified plan status. Effective immediately.