101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2337

 

Introduced 1/8/2020, by Sen. Dan McConchie

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-101.5 new

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Authorizes the governing body of a municipality or instrumentality to provide an alternative retirement plan in lieu of or in addition to the existing plan under the Article. Provides that the alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may include disability or survivor benefits and any other benefits that are permitted under federal law. Provides that the alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable. Provides that service credit received under an alternative retirement plan may not be transferred to any other fund and may not be used under the Retirement Systems Reciprocal Act (Article 20 of the Code).


LRB101 14440 RPS 63329 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2337LRB101 14440 RPS 63329 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by adding
5Section 7-101.5 as follows:
 
6    (40 ILCS 5/7-101.5 new)
7    Sec. 7-101.5. Alternative retirement plan; local control
8of benefits.
9    (a) The governing body of a municipality or instrumentality
10may, at any time on or after the effective date of this
11amendatory Act of the 101st General Assembly, provide by
12ordinance or resolution, whichever is applicable, for an
13alternative retirement plan, either in addition to or in lieu
14of the existing plan under this Article, for its eligible new
15employees. The alternative retirement plan shall apply only to
16persons who have not participated in the existing plan under
17this Article.
18    (b) The alternative retirement plan may include a
19defined-benefit component, a defined-contribution component,
20or both, and may, but is not required to, include disability or
21survivor benefits and any other provisions or benefits that are
22permitted under federal law. The alternative retirement plan is
23not required to provide any minimum level of benefits and need

 

 

SB2337- 2 -LRB101 14440 RPS 63329 b

1not provide any benefits at all, other than mandatory Social
2Security coverage if applicable.
3    (c) Service credit received under an alternative
4retirement plan may not be transferred to any other pension
5fund or retirement system and may not be used under the
6Retirement Systems Reciprocal Act.
7    (d) Providing an alternative retirement plan does not
8release the municipality or instrumentality from the
9obligation of continuing to participate under this Article with
10regard to participants in the existing retirement plan. In no
11event may the municipality or instrumentality in any way
12diminish or impair the rights or benefits of participants in
13the existing retirement plan.
14    (e) Persons participating in an alternative retirement
15plan under this Section shall be deemed to be members of the
16Fund who participate in an alternative retirement plan and
17shall remain subject to the provisions of the Agreement with
18the State Agency, as provided in Section 7-170, for Social
19Security purposes to the extent permitted under federal law.
20Notwithstanding any provision of this Article to the contrary,
21the alternative retirement plan need not comply with any other
22mandatory provision of the existing retirement plan.