99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB6097

 

Introduced 2/11/2016, 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.


LRB099 16277 RPS 40607 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6097LRB099 16277 RPS 40607 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 99th 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

 

 

HB6097- 2 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 3 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 4 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 5 -LRB099 16277 RPS 40607 b

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.

 

 

HB6097- 6 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 7 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 8 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 9 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 10 -LRB099 16277 RPS 40607 b

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,

 

 

HB6097- 11 -LRB099 16277 RPS 40607 b

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.

 

 

HB6097- 12 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 13 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 14 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 15 -LRB099 16277 RPS 40607 b

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,

 

 

HB6097- 16 -LRB099 16277 RPS 40607 b

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.

 

 

HB6097- 17 -LRB099 16277 RPS 40607 b

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.

 

 

HB6097- 18 -LRB099 16277 RPS 40607 b

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.

 

 

HB6097- 19 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 20 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 21 -LRB099 16277 RPS 40607 b

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.

 

 

HB6097- 22 -LRB099 16277 RPS 40607 b

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

 

 

HB6097- 23 -LRB099 16277 RPS 40607 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 99th General Assembly.

 

 

HB6097- 24 -LRB099 16277 RPS 40607 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 315/7.6 new
4    40 ILCS 5/3-101.5 new
5    40 ILCS 5/3-150from Ch. 108 1/2, par. 3-150
6    40 ILCS 5/4-101.5 new
7    40 ILCS 5/4-142from Ch. 108 1/2, par. 4-142
8    40 ILCS 5/5-101.5 new
9    40 ILCS 5/6-101.5 new
10    40 ILCS 5/7-101.5 new
11    40 ILCS 5/8-101.5 new
12    40 ILCS 5/9-101.5 new
13    40 ILCS 5/10-101.5 new
14    40 ILCS 5/10-103from Ch. 108 1/2, par. 10-103
15    40 ILCS 5/11-101.5 new
16    40 ILCS 5/12-101.5 new
17    40 ILCS 5/13-101.5 new
18    40 ILCS 5/15-101.5 new
19    40 ILCS 5/16-101.5 new
20    40 ILCS 5/17-101.5 new
21    115 ILCS 5/10.6 new