HB3228 Summary

• Modifies the restriction on early retirement benefit recipients returning to work under the Illinois Municipal Retirement Fund (IMRF) to apply only to employment requiring IMRF participation or contractual services that would require participation if performed as an employee.

• Allows early retirement incentive programs to be established by IMRF participating employers through adoption of a resolution or ordinance, targeting employees age 50+ with 20+ years of service credit.

• Provides eligible retirees up to 5 years of additional creditable service and equivalent age enhancement at retirement, funded through employee contributions of 4.5% of highest annual salary (6.5% for sheriff's law enforcement employees).

• Requires employers offering early retirement programs to use best efforts to limit replacement hiring or keep replacement salaries to no more than 80% of the total salaries formerly paid to participating retirees.

• Exempts the State from reimbursement obligations under the State Mandates Act for implementing this Act and takes effect immediately upon becoming law.