101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2749
 
Introduced , by Rep. Thomas Morrison
 
SYNOPSIS AS INTRODUCED:



See Index

 Amends the Illinois Pension Code. Authorizes units of local government to provide alternative retirement plans in lieu of or in addition to the existing plan under the applicable 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). Amends the Illinois Public Labor Relations Act and the Illinois Educational Labor Relations Act. Provides that employers shall not be required to bargain over the changes made by the amendatory Act.



LRB101 09210 RPS 54304 b


FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB2749LRB101 09210 RPS 54304 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 Public Labor Relations Act is 
5amended by adding Section 7.6 as follows:

6 (5 ILCS 315/7.6 new)
7 Sec. 7.6. Mandatory collective bargaining regarding 
8alternative retirement plans not required. Notwithstanding any 
9other provision of this Act, employers shall not be subject to 
10mandatory collective bargaining with regard to the adoption or 
11implementation of an alternative retirement plan authorized by 
12this amendatory Act of the 101st General Assembly. 

13 Section 10. The Illinois Pension Code is amended by 
14changing Sections 3-150, 4-142, and 10-103 and by adding 
15Sections 3-101.5, 4-101.5, 5-101.5, 6-101.5, 7-101.5, 8-101.5, 
169-101.5, 10-101.5, 11-101.5, 12-101.5, 13-101.5, 15-101.5, 
1716-101.5, and 17-101.5 as follows:

18 (40 ILCS 5/3-101.5 new)
19 Sec. 3-101.5. Alternative retirement plan; local control 
20of benefits.
21 (a) The corporate authorities of a municipality subject to 
 
 
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1this Article may, at any time on or after the effective date of 
2this Section, provide by ordinance for an alternative 
3retirement plan, either in addition to or in lieu of the 
4existing plan under this Article, for its eligible new 
5employees. The alternative retirement plan shall apply only to 
6persons who have not participated in the existing plan under 
7this Article.
8 (b) The alternative retirement plan may include a 
9defined-benefit component, a defined-contribution component, 
10or both, and may, but is not required to, include disability or 
11survivor benefits and any other provisions or benefits that are 
12permitted under federal law. The alternative retirement plan is 
13not required to provide any minimum level of benefits and need 
14not provide any benefits at all, other than mandatory Social 
15Security coverage if applicable. 
16 (c) Service credit received under an alternative 
17retirement plan may not be transferred to any other pension 
18fund or retirement system. 
19 (d) Providing an alternative retirement plan does not 
20release the municipality from the obligation of continuing to 
21participate under this Article with regard to participants in 
22the existing retirement plan. In no event may the municipality 
23in any way diminish or impair the rights or benefits of 
24participants in the existing retirement plan.
25 (e) Persons participating in an alternative retirement 
26plan under this Section shall be deemed to be members of the 
 
 
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1fund who participate in an alternative retirement plan. 
2Notwithstanding any provision of this Article to the contrary, 
3the alternative retirement plan need not comply with any 
4mandatory provisions of the existing retirement plan. 




5 (40 ILCS 5/3-150) (from Ch. 108 1/2, par. 3-150)



6 Sec. 3-150. Applicability of home rule powers. A home rule

7unit, as defined in Article VII of the 1970 Illinois 
8Constitution or any
amendment thereto, shall have no power to 
9change, alter,
or amend in any way the provisions of this

10Article, except as provided in Section 3-101.5. A home rule 
11unit which is a municipality, as defined
in Section 3-103, 
12shall not provide for, singly or as a part of any
plan or 
13program, by any means whatsoever, any type of retirement
or 
14annuity benefit to a police officer other than through

15establishment
of a fund as provided in this Article, except as 
16provided in Section 3-101.5.

17(Source: P.A. 83-1440.)


18 (40 ILCS 5/4-101.5 new)
19 Sec. 4-101.5. Alternative retirement plan; local control 
20of benefits.
21 (a) The corporate authorities of a municipality subject to 
22this Article may, at any time on or after the effective date of 
23this Section, provide by ordinance for an alternative 
24retirement plan, either in addition to or in lieu of the 
 
 
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1existing plan under this Article, for its eligible new 
2employees. The alternative retirement plan shall apply only to 
3persons who have not participated in the existing plan under 
4this Article.
5 (b) The alternative retirement plan may include a 
6defined-benefit component, a defined-contribution component, 
7or both, and may, but is not required to, include disability or 
8survivor benefits and any other provisions or benefits that are 
9permitted under federal law. The alternative retirement plan is 
10not required to provide any minimum level of benefits and need 
11not provide any benefits at all, other than mandatory Social 
12Security coverage if applicable. 
13 (c) Service credit received under an alternative 
14retirement plan may not be transferred to any other pension 
15fund or retirement system. 
16 (d) Providing an alternative retirement plan does not 
17release the municipality from the obligation of continuing to 
18participate under this Article with regard to participants in 
19the existing retirement plan. In no event may the municipality 
20in any way diminish or impair the rights or benefits of 
21participants in the existing retirement plan.
22 (e) Persons participating in an alternative retirement 
23plan under this Section shall be deemed to be members of the 
24fund who participate in an alternative retirement plan. 
25Notwithstanding any provision of this Article to the contrary, 
26the alternative retirement plan need not comply with any 
 
 
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1mandatory provisions of the existing retirement plan. 




2 (40 ILCS 5/4-142) (from Ch. 108 1/2, par. 4-142)



3 Sec. 4-142. Applicability of home rule powers. A home rule

4unit, as defined in Article VII of the 1970 Illinois 
5Constitution or
any amendment thereto, shall have no power to 
6change, alter,
or amend in any way
the provisions of this 
7Article, except as provided in Section 4-101.5.
A home rule 
8unit
which is a municipality, as defined in Section 4-103, 
9shall not provide
for, singly or as a part of any plan or 
10program, by any means whatsoever,
any type of retirement or 
11annuity benefit to a firefighter
other than through

12establishment of a fund as provided in this Article as now or 
13hereafter
amended, except as provided in Section 4-101.5.

14(Source: P.A. 83-1440.)


15 (40 ILCS 5/5-101.5 new)
16 Sec. 5-101.5. Alternative retirement plan; local control 
17of benefits.
18 (a) The city council may, at any time on or after the 
19effective date of this Section, provide by ordinance for an 
20alternative retirement plan, either in addition to or in lieu 
21of the existing plan under this Article, for its eligible new 
22employees. The alternative retirement plan shall apply only to 
23persons who have not participated in the existing plan under 
24this Article.
 
 
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1 (b) The alternative retirement plan may include a 
2defined-benefit component, a defined-contribution component, 
3or both, and may, but is not required to, include disability or 
4survivor benefits and any other provisions or benefits that are 
5permitted under federal law. The alternative retirement plan is 
6not required to provide any minimum level of benefits and need 
7not provide any benefits at all, other than mandatory Social 
8Security coverage if applicable. 
9 (c) Service credit received under an alternative 
10retirement plan may not be transferred to any other pension 
11fund or retirement system. 
12 (d) Providing an alternative retirement plan does not 
13release the city from the obligation of continuing to 
14participate under this Article with regard to participants in 
15the existing retirement plan. In no event may the city in any 
16way diminish or impair the rights or benefits of participants 
17in the existing retirement plan.
18 (e) Persons participating in an alternative retirement 
19plan under this Section shall be deemed to be members of the 
20Fund who participate in an alternative retirement plan. 
21Notwithstanding any provision of this Article to the contrary, 
22the alternative retirement plan need not comply with any 
23mandatory provisions of the existing retirement plan. 

24 (40 ILCS 5/6-101.5 new)
25 Sec. 6-101.5. Alternative retirement plan; local control 
 
 
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1of benefits.
2 (a) The city council may, at any time on or after the 
3effective date of this Section, provide by ordinance for an 
4alternative retirement plan, either in addition to or in lieu 
5of the existing plan under this Article, for its eligible new 
6employees. The alternative retirement plan shall apply only to 
7persons who have not participated in the existing plan under 
8this Article.
9 (b) The alternative retirement plan may include a 
10defined-benefit component, a defined-contribution component, 
11or both, and may, but is not required to, include disability or 
12survivor benefits and any other provisions or benefits that are 
13permitted under federal law. The alternative retirement plan is 
14not required to provide any minimum level of benefits and need 
15not provide any benefits at all, other than mandatory Social 
16Security coverage if applicable. 
17 (c) Service credit received under an alternative 
18retirement plan may not be transferred to any other pension 
19fund or retirement system. 
20 (d) Providing an alternative retirement plan does not 
21release the city from the obligation of continuing to 
22participate under this Article with regard to participants in 
23the existing retirement plan. In no event may the city in any 
24way diminish or impair the rights or benefits of participants 
25in the existing retirement plan.
26 (e) Persons participating in an alternative retirement 
 
 
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1plan under this Section shall be deemed to be members of the 
2Fund who participate in an alternative retirement plan. 
3Notwithstanding any provision of this Article to the contrary, 
4the alternative retirement plan need not comply with any 
5mandatory provisions of the existing retirement plan. 

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 
11Section, provide by ordinance or resolution, whichever is 
12applicable, for an alternative retirement plan, either in 
13addition to or in lieu of the existing plan under this Article, 
14for its eligible new employees. The alternative retirement plan 
15shall apply only to persons who have not participated in the 
16existing plan under this Article.
17 (b) The alternative retirement plan may include a 
18defined-benefit component, a defined-contribution component, 
19or both, and may, but is not required to, include disability or 
20survivor benefits and any other provisions or benefits that are 
21permitted under federal law. The alternative retirement plan is 
22not required to provide any minimum level of benefits and need 
23not provide any benefits at all, other than mandatory Social 
24Security coverage if applicable. 
25 (c) Service credit received under an alternative 
 
 
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1retirement plan may not be transferred to any other pension 
2fund or retirement system and may not be used under the 
3Retirement Systems Reciprocal Act. 
4 (d) Providing an alternative retirement plan does not 
5release the municipality or instrumentality from the 
6obligation of continuing to participate under this Article with 
7regard to participants in the existing retirement plan. In no 
8event may the municipality or instrumentality in any way 
9diminish or impair the rights or benefits of participants in 
10the existing retirement plan.
11 (e) Persons participating in an alternative retirement 
12plan under this Section shall be deemed to be members of the 
13Fund who participate in an alternative retirement plan and 
14shall remain subject to the provisions of the Agreement with 
15the State Agency, as provided in Section 7-170, for Social 
16Security purposes to the extent permitted under federal law. 
17Notwithstanding any provision of this Article to the contrary, 
18the alternative retirement plan need not comply with any other 
19mandatory provision of the existing retirement plan. 

20 (40 ILCS 5/8-101.5 new)
21 Sec. 8-101.5. Alternative retirement plan; local control 
22of benefits.
23 (a) The city council may, at any time on or after the 
24effective date of this Section, provide by ordinance for an 
25alternative retirement plan, either in addition to or in lieu 
 
 
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1of the existing plan under this Article, for its eligible new 
2employees. The alternative retirement plan shall apply only to 
3persons who have not participated in the existing plan under 
4this Article.
5 (b) The alternative retirement plan may include a 
6defined-benefit component, a defined-contribution component, 
7or both, and may, but is not required to, include disability or 
8survivor benefits and any other provisions or benefits that are 
9permitted under federal law. The alternative retirement plan is 
10not required to provide any minimum level of benefits and need 
11not provide any benefits at all, other than mandatory Social 
12Security coverage if applicable. 
13 (c) Service credit received under an alternative 
14retirement plan may not be transferred to any other pension 
15fund or retirement system and may not be used under the 
16Retirement Systems Reciprocal Act. 
17 (d) Providing an alternative retirement plan does not 
18release the city from the obligation of continuing to 
19participate under this Article with regard to participants in 
20the existing retirement plan. In no event may the city in any 
21way diminish or impair the rights or benefits of participants 
22in the existing retirement plan.
23 (e) Persons participating in an alternative retirement 
24plan under this Section shall be deemed to be members of the 
25Fund who participate in an alternative retirement plan. 
26Notwithstanding any provision of this Article to the contrary, 
 
 
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1the alternative retirement plan need not comply with any 
2mandatory provisions of the existing retirement plan. 

3 (40 ILCS 5/9-101.5 new)
4 Sec. 9-101.5. Alternative retirement plan; local control 
5of benefits.
6 (a) The county board may, at any time on or after the 
7effective date of this Section, provide by ordinance for an 
8alternative retirement plan, either in addition to or in lieu 
9of the existing plan under this Article, for its eligible new 
10employees. The alternative retirement plan shall apply only to 
11persons who have not participated in the existing plan under 
12this Article. An alternative retirement plan established under 
13this Section shall not apply to Article 10.
14 (b) The alternative retirement plan may include a 
15defined-benefit component, a defined-contribution component, 
16or both, and may, but is not required to, include disability or 
17survivor benefits and any other provisions or benefits that are 
18permitted under federal law. The alternative retirement plan is 
19not required to provide any minimum level of benefits and need 
20not provide any benefits at all, other than mandatory Social 
21Security coverage if applicable. 
22 (c) Service credit received under an alternative 
23retirement plan may not be transferred to any other pension 
24fund or retirement system and may not be used under the 
25Retirement Systems Reciprocal Act. 
 
 
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1 (d) Providing an alternative retirement plan does not 
2release the county from the obligation of continuing to 
3participate under this Article with regard to participants in 
4the existing retirement plan. In no event may the county in any 
5way diminish or impair the rights or benefits of participants 
6in the existing retirement plan.
7 (e) Persons participating in an alternative retirement 
8plan under this Section shall be deemed to be members of the 
9Fund who participate in an alternative retirement plan. 
10Notwithstanding any provision of this Article to the contrary, 
11the alternative retirement plan need not comply with any 
12mandatory provisions of the existing retirement plan. 

13 (40 ILCS 5/10-101.5 new)
14 Sec. 10-101.5. Alternative retirement plan; local control 
15of benefits.
16 (a) The district may, at any time on or after the effective 
17date of this Section, provide by resolution for an alternative 
18retirement plan, either in addition to or in lieu of the 
19existing plan under this Article, for its eligible new 
20employees. The alternative retirement plan shall apply only to 
21persons who have not participated in the existing plan under 
22this Article.
23 (b) The alternative retirement plan may include a 
24defined-benefit component, a defined-contribution component, 
25or both, and may, but is not required to, include disability or 
 
 
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1survivor benefits and any other provisions or benefits that are 
2permitted under federal law. The alternative retirement plan is 
3not required to provide any minimum level of benefits and need 
4not provide any benefits at all, other than mandatory Social 
5Security coverage if applicable. 
6 (c) Service credit received under an alternative 
7retirement plan may not be transferred to any other pension 
8fund or retirement system and may not be used under the 
9Retirement Systems Reciprocal Act. 
10 (d) Providing an alternative retirement plan does not 
11release the district from the obligation of continuing to 
12participate under this Article with regard to participants in 
13the existing retirement plan. In no event may the district in 
14any way diminish or impair the rights or benefits of 
15participants in the existing retirement plan.
16 (e) Persons participating in an alternative retirement 
17plan under this Section shall be deemed to be members of the 
18Fund who participate in an alternative retirement plan. 
19Notwithstanding any provision of this Article to the contrary, 
20the alternative retirement plan need not comply with any 
21mandatory provisions of the existing retirement plan. 




22 (40 ILCS 5/10-103) (from Ch. 108 1/2, par. 10-103)



23 Sec. 10-103. Members, contributions and benefits. Except 
24for alternative retirement plans established under Section 
2510-101.5, the The board shall cause the same deductions to be 
 
 
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1made
from salaries
and, subject to Section 10-109, allow the 
2same annuities, refunds and benefits for employees of the

3district as are made and allowed for employees of the county.

4(Source: P.A. 95-1036, eff. 2-17-09.)


5 (40 ILCS 5/11-101.5 new)
6 Sec. 11-101.5. Alternative retirement plan; local control 
7of benefits.
8 (a) The city council may, at any time on or after the 
9effective date of this Section, provide by ordinance for an 
10alternative retirement plan, either in addition to or in lieu 
11of the existing plan under this Article, for its eligible new 
12employees. The alternative retirement plan shall apply only to 
13persons who have not participated in the existing plan under 
14this Article.
15 (b) The alternative retirement plan may include a 
16defined-benefit component, a defined-contribution component, 
17or both, and may, but is not required to, include disability or 
18survivor benefits and any other provisions or benefits that are 
19permitted under federal law. The alternative retirement plan is 
20not required to provide any minimum level of benefits and need 
21not provide any benefits at all, other than mandatory Social 
22Security coverage if applicable. 
23 (c) Service credit received under an alternative 
24retirement plan may not be transferred to any other pension 
25fund or retirement system and may not be used under the 
 
 
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1Retirement Systems Reciprocal Act. 
2 (d) Providing an alternative retirement plan does not 
3release the city from the obligation of continuing to 
4participate under this Article with regard to participants in 
5the existing retirement plan. In no event may the city in any 
6way diminish or impair the rights or benefits of participants 
7in the existing retirement plan.
8 (e) Persons participating in an alternative retirement 
9plan under this Section shall be deemed to be members of the 
10Fund who participate in an alternative retirement plan. 
11Notwithstanding any provision of this Article to the contrary, 
12the alternative retirement plan need not comply with any 
13mandatory provisions of the existing retirement plan. 

14 (40 ILCS 5/12-101.5 new)
15 Sec. 12-101.5. Alternative retirement plan; local control 
16of benefits.
17 (a) The city council may, at any time on or after the 
18effective date of this Section, provide by ordinance for an 
19alternative retirement plan, either in addition to or in lieu 
20of the existing plan under this Article, for its eligible new 
21employees. The alternative retirement plan shall apply only to 
22persons who have not participated in the existing plan under 
23this Article.
24 (b) The alternative retirement plan may include a 
25defined-benefit component, a defined-contribution component, 
 
 
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1or both, and may, but is not required to, include disability or 
2survivor benefits and any other provisions or benefits that are 
3permitted under federal law. The alternative retirement plan is 
4not required to provide any minimum level of benefits and need 
5not provide any benefits at all, other than mandatory Social 
6Security coverage if applicable. 
7 (c) Service credit received under an alternative 
8retirement plan may not be transferred to any other pension 
9fund or retirement system and may not be used under the 
10Retirement Systems Reciprocal Act. 
11 (d) Providing an alternative retirement plan does not 
12release the city from the obligation of continuing to 
13participate under this Article with regard to participants in 
14the existing retirement plan. In no event may the city in any 
15way diminish or impair the rights or benefits of participants 
16in the existing retirement plan.
17 (e) Persons participating in an alternative retirement 
18plan under this Section shall be deemed to be members of the 
19Fund who participate in an alternative retirement plan. 
20Notwithstanding any provision of this Article to the contrary, 
21the alternative retirement plan need not comply with any 
22mandatory provisions of the existing retirement plan. 

23 (40 ILCS 5/13-101.5 new)
24 Sec. 13-101.5. Alternative retirement plan; local control 
25of benefits.
 
 
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1 (a) The Metropolitan Water Reclamation District of Greater 
2Chicago may, at any time on or after the effective date of this 
3Section, provide by ordinance for an alternative retirement 
4plan, either in addition to or in lieu of the existing plan 
5under this Article, for its eligible new employees. The 
6alternative retirement plan shall apply only to persons who 
7have not participated in the existing plan under this Article.
8 (b) The alternative retirement plan may include a 
9defined-benefit component, a defined-contribution component, 
10or both, and may, but is not required to, include disability or 
11survivor benefits and any other provisions or benefits that are 
12permitted under federal law. The alternative retirement plan is 
13not required to provide any minimum level of benefits and need 
14not provide any benefits at all, other than mandatory Social 
15Security coverage if applicable. 
16 (c) Service credit received under an alternative 
17retirement plan may not be transferred to any other pension 
18fund or retirement system and may not be used under the 
19Retirement Systems Reciprocal Act. 
20 (d) Providing an alternative retirement plan does not 
21release the Metropolitan Water Reclamation District of Greater 
22Chicago from the obligation of continuing to participate under 
23this Article with regard to participants in the existing 
24retirement plan. In no event may the city in any way diminish 
25or impair the rights or benefits of participants in the 
26existing retirement plan.
 
 
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1 (e) Persons participating in an alternative retirement 
2plan under this Section shall be deemed to be members of the 
3Fund who participate in an alternative retirement plan. 
4Notwithstanding any provision of this Article to the contrary, 
5the alternative retirement plan need not comply with any 
6mandatory provisions of the existing retirement plan. 

7 (40 ILCS 5/15-101.5 new)
8 Sec. 15-101.5. Alternative retirement plan; local control 
9of benefits by community colleges.
10 (a) The board of trustees of a community college district 
11that is an employer under this Article may, at any time on or 
12after the effective date of this Section, provide by resolution 
13for an alternative retirement plan, either in addition to or in 
14lieu of the existing plan under this Article, for its eligible 
15new employees. The alternative retirement plan shall apply only 
16to persons 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 
24not provide any benefits at all, other than mandatory Social 
25Security coverage if applicable. 
 
 
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1 (c) Service credit received under an alternative 
2retirement plan may not be transferred to any other pension 
3fund or retirement system and may not be used under the 
4Retirement Systems Reciprocal Act. 
5 (d) Providing an alternative retirement plan does not 
6release the community college district from the obligation of 
7continuing to participate under this Article with regard to 
8participants in the existing retirement plan. The alternative 
9retirement plan provided by the community college district 
10shall be funded with contributions from that community college 
11district and its employees who participate in the alternative 
12retirement plan. In no event may the community college district 
13in any way diminish or impair the rights or benefits of 
14participants in the existing retirement plan.
15 (e) Persons participating in an alternative retirement 
16plan under this Section shall be deemed to be participants in 
17the System who participate in an alternative retirement plan. 
18Notwithstanding any provision of this Article to the contrary, 
19the alternative retirement plan need not comply with any 
20mandatory provisions of the existing retirement plan. 

21 (40 ILCS 5/16-101.5 new)
22 Sec. 16-101.5. Alternative retirement plan; local control 
23of benefits by school districts.
24 (a) The governing body of a school district that is an 
25employer under this Article may, at any time on or after the 
 
 
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1effective date of this Section, provide by resolution for an 
2alternative retirement plan, either in addition to or in lieu 
3of the existing plan under this Article, for its eligible new 
4teachers. The alternative retirement plan shall apply only to 
5persons who have not participated in the existing plan under 
6this Article.
7 (b) The alternative retirement plan may include a 
8defined-benefit component, a defined-contribution component, 
9or both, and may, but is not required to, include disability or 
10survivor benefits and any other provisions or benefits that are 
11permitted under federal law. The alternative retirement plan is 
12not required to provide any minimum level of benefits and need 
13not provide any benefits at all, other than mandatory Social 
14Security coverage if applicable. 
15 (c) Service credit received under an alternative 
16retirement plan may not be transferred to any other pension 
17fund or retirement system and may not be used under the 
18Retirement Systems Reciprocal Act. 
19 (d) Providing an alternative retirement plan does not 
20release the school district from the obligation of continuing 
21to participate under this Article with regard to participants 
22in the existing retirement plan. The alternative retirement 
23plan provided by the school district shall be funded with 
24contributions from that school district and its employees who 
25participate in the alternative retirement plan. In no event may 
26the school district in any way diminish or impair the rights or 
 
 
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1benefits of participants in the existing retirement plan.
2 (e) Persons participating in an alternative retirement 
3plan under this Section shall be deemed to be participants in 
4the System who participate in an alternative retirement plan. 
5Notwithstanding any provision of this Article to the contrary, 
6the alternative retirement plan need not comply with any 
7mandatory provisions of the existing retirement plan. 

8 (40 ILCS 5/17-101.5 new)
9 Sec. 17-101.5. Alternative retirement plan; local control 
10of benefits.
11 (a) The city council may, at any time on or after the 
12effective date of this Section, provide by resolution for an 
13alternative retirement plan, either in addition to or in lieu 
14of the existing plan under this Article, for eligible new 
15teachers. 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 
24not provide any benefits at all, other than mandatory Social 
25Security coverage if applicable. 
 
 
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1 (c) Service credit received under an alternative 
2retirement plan may not be transferred to any other pension 
3fund or retirement system and may not be used under the 
4Retirement Systems Reciprocal Act. 
5 (d) Providing an alternative retirement plan does not 
6release the city or the Board of Education from the obligation 
7of continuing to participate under this Article with regard to 
8participants in the existing retirement plan. The alternative 
9retirement plan provided by the city shall be funded with 
10contributions from the city or the Board of Education, and the 
11teachers who participate in the alternative retirement plan. In 
12no event may the city or the Board of Education in any way 
13diminish or impair the rights or benefits of participants in 
14the existing retirement plan.
15 (e) Persons participating in an alternative retirement 
16plan under this Section shall be deemed to be members of the 
17Fund who participate in an alternative retirement plan. 
18Notwithstanding any provision of this Article to the contrary, 
19the alternative retirement plan need not comply with any 
20mandatory provisions of the existing retirement plan. 

21 Section 15. The Illinois Educational Labor Relations Act is 
22amended by adding Section 10.6 as follows:

23 (115 ILCS 5/10.6 new)
24 Sec. 10.6. Mandatory collective bargaining regarding 
 
 
HB2749- 23 -LRB101 09210 RPS 54304 b


1alternative retirement plans not required. Notwithstanding any 
2other provision of this Act, employers shall not be subject to 
3mandatory collective bargaining with regard to the adoption or 
4implementation of an alternative retirement plan authorized by 
5this amendatory Act of the 101st General Assembly. 


 
 
HB2749- 24 -LRB101 09210 RPS 54304 b


1
INDEX

2
Statutes amended in order of appearance