Bill Text: IL SB1826 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: 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).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB1826 Detail]

Download: Illinois-2019-SB1826-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB1826 Introduced 2/15/2019, 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 11002 RPS 56194 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB1826 LRB101 11002 RPS 56194 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by adding
Section 7-101.5 as follows:
(40 ILCS 5/7-101.5 new)
Sec. 7-101.5. Alternative retirement plan; local control
of benefits.
(a) The governing body of a municipality or instrumentality
may, at any time on or after the effective date of this
Section, provide by ordinance or resolution, whichever is
applicable, for an alternative retirement plan, either in
addition to or in lieu of the existing plan under this Article,
for its eligible new employees. The alternative retirement plan
shall apply only to persons who have not participated in the
existing plan under this Article.
(b) The alternative retirement plan may include a
defined-benefit component, a defined-contribution component,
or both, and may, but is not required to, include disability or
survivor benefits and any other provisions or benefits that are
permitted under federal law. 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

SB1826 - 2 - LRB101 11002 RPS 56194 b
Security coverage if applicable.
(c) Service credit received under an alternative
retirement plan may not be transferred to any other pension
fund or retirement system and may not be used under the
Retirement Systems Reciprocal Act.
(d) Providing an alternative retirement plan does not
release the municipality or instrumentality from the
obligation of continuing to participate under this Article with
regard to participants in the existing retirement plan. In no
event may the municipality or instrumentality in any way
diminish or impair the rights or benefits of participants in
the existing retirement plan.
(e) Persons participating in an alternative retirement
plan under this Section shall be deemed to be members of the
Fund who participate in an alternative retirement plan and
shall remain subject to the provisions of the Agreement with
the State Agency, as provided in Section 7-170, for Social
Security purposes to the extent permitted under federal law.
Notwithstanding any provision of this Article to the contrary,
the alternative retirement plan need not comply with any other
mandatory provision of the existing retirement plan.