HB0149 Summary: Pension Code Benefit Elections

• Current pension system participants must make a one-time irrevocable election by January 1, 2012 to choose between the traditional benefit package, the revised benefit package for new hires, or a self-managed plan (if employer adopts it).

• Persons becoming participants on or after January 1, 2011 may elect only between the revised benefit package or the self-managed plan and have 30 days from their first day of employment to make their election.

• Establishes a self-managed plan allowing employees to invest contributions in mutual funds and purchase annuity contracts; employer adoption of this plan is irrevocable and makes it the default option for employees who fail to elect.

• Sets minimum state contributions at 6% of employee payroll or one-half of the revised benefit package's actuarial normal cost (whichever is greater) starting in fiscal year 2013, plus additional contributions from 2013-2045 to address unfunded liabilities.

• Modifies the Illinois Public Labor Relations Act to specify that pension code changes control in conflicts with labor relations law.