Illinois General Assembly - Bill Status for HB1259

Synopsis As Introduced
Amends the Illinois Pension Code. Allows participants in the Illinois Municipal Retirement Fund (IMRF) to elect to participate in a self-managed program of retirement benefits instead of the program of traditional or reformed retirement benefits currently offered. Provides that the self-managed plan shall authorize a participant to accumulate assets for retirement through a combination of employer and employee contributions that may be invested at the participant's direction in mutual funds, collective investment funds, or other investment products and used to purchase annuity contracts. Requires the Fund to make the self-managed plan available within 6 months after the effective date of the amendatory Act. Makes conforming changes in the Retirement Systems Reciprocal Act. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Pension Note (Government Forecasting & Accountability)

Currently, SURS is the only statewide retirement system that offers a Self-Managed Plan (SMP) similar to the one contemplated by HB 1259. SURS assumes that approximately 15% of its new members opt into the SMP. According to IMRF, municipal employers pay into IMRF amounts that are approximately double the required Tier 1 employee contributions. The SMP that would be implemented by this bill would require employers to match employee contributions. Therefore, assuming a municipality had no significant unfunded liabilities to amortize; HB 1259 would produce a cost savings for Tier 1 employees who elect to participate in the SMP. However, IMRF reports that as more Tier 2 employees are hired, the savings would diminish as the Tier 2 normal cost is significantly lower. An actuarial study would be required to determine the exact amount of savings.

Actions

Date	Chamber	Action
2/4/2013	House	Filed with the Clerk by Rep. Mike Fortner
2/4/2013	House	First Reading
2/4/2013	House	Referred to Rules Committee
2/25/2013	House	Assigned to Personnel and Pensions Committee
3/6/2013	House	Pension Note Filed
3/22/2013	House	Rule 19(a) / Re-referred to Rules Committee
12/3/2014	House	Session Sine Die

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