HB3798 Summary

• Amends Illinois Pension Code to authorize General Assembly Retirement System to establish a self-managed (defined contribution) plan as alternative to traditional defined benefit plan.

• Newly eligible employees are automatically enrolled in self-managed plan; currently eligible employees may elect to participate within 5 years, with election being irrevocable once made.

• Self-managed plan allows participants to accumulate retirement assets through combined employer and employee contributions invested in mutual funds, collective investment funds, or other products to purchase annuity contracts.

• Participants who elect self-managed plan receive opening account balance equal to contribution refund plus employer contributions for service credit earned, with assets transferred from defined benefit program; vesting occurs at 5 years of service, death while employed (with 1.5+ years service), or retirement eligibility.

• Self-managed plan must be available by January 1, 2011; changes exempted from 5-year expiration provision for new benefit increases; act effective immediately.