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
 

  
SB1826LRB101 11002 RPS 56194 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 
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 
 
 
SB1826- 2 -LRB101 11002 RPS 56194 b

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