Illinois Bill Would Expand Options Available Under State Retirement System

A bill before the Illinois Senate would give participants in the state retirement system the opportunity to choose an additional option for their retirement plan coverage. 

Sen. Dan McConchie (R-Lake Zurich) introduced SB 1516, which would require plans by July 1, 2025 to prepare and implement a defined contribution plan that aggregates state and employee contributions in individual participant accounts that would be used for payouts after retirement. The bill would: 

• allow certain participants to choose to participate in the DC plan instead of the defined benefit plan the system operates; 
• provide that a person who first becomes an employee after the effective date of the measure, if enacted, would not be required to participate in the system as a condition of employment; and 
• provide that any benefit increase that results from the measure is excluded from the definition of "new benefit increase."

Deadline. SB 1516 would require the plan by July 1, 2025, to prepare and implement the DC plan by July 1, 2025.

Status. SB 1516 is before the Senate Committee on Assignments.