97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3370

 

Introduced 2/24/2011, by Rep. Mike Fortner

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-173.3 new
30 ILCS 805/8.35 new

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Requires the Fund, by rule, to establish a defined contribution benefit plan. Requires the plan to be qualified under the Internal Revenue Code of 1986 and to authorize each participating municipality and participating instrumentality to (i) require participation in the plan by any person who first becomes its employee on or after January 1, 2012, (ii) define benefit levels and employer contributions as it sees fit, (iii) make benefit changes as it deems appropriate, and (iv) otherwise administer the plan. Provides that participating municipalities and instrumentalities must elect to participate in the plan by no later than January 1, 2012. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB097 08653 JDS 48782 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3370LRB097 08653 JDS 48782 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 7-173.3 as follows:
 
6    (40 ILCS 5/7-173.3 new)
7    Sec. 7-173.3. Defined contribution benefit plan. As soon as
8practical after the effective date of this Section, the
9Illinois Municipal Retirement Fund must, by rule, establish a
10defined contribution benefit plan. The plan established by the
11Fund must be qualified under the Internal Revenue Code of 1986.
12However, it must also authorize each participating
13municipality and participating instrumentality (i) to require
14participation in the plan by any person who first becomes its
15employee on or after January 1, 2012, (ii) to define benefit
16levels and employer contributions as it sees fit, (iii) to make
17benefit changes as it deems appropriate, and (iv) otherwise
18administer the plan.
19    In order to participate in the defined benefit plan
20established under this Section, the corporate authorities of
21the participating municipality or participating
22instrumentality must, by resolution or ordinance adopted by a
23majority of its members, irrevocably elect to participate in

 

 

HB3370- 2 -LRB097 08653 JDS 48782 b

1the plan no later than January 1, 2012. If a participating
2municipality or instrumentality does not make such an election,
3it shall continue to participate in the benefits plan otherwise
4provided under this Article.
5    For the purposes of this Section, "defined contribution
6benefit plan" means a plan that offers employees the
7opportunity to accumulate assets for retirement through a
8combination of employee and employer contributions that may be
9invested in mutual funds, collective investment funds, or other
10investment products and used to purchase annuity contracts,
11either fixed or variable, or a combination thereof.
 
12
13    Section 90. The State Mandates Act is amended by adding
14Section 8.35 as follows:
 
15    (30 ILCS 805/8.35 new)
16    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
17of this Act, no reimbursement by the State is required for the
18implementation of any mandate created by this amendatory Act of
19the 97th General Assembly.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.