HB5754 Summary

• Requires each Illinois retirement system (General Assembly, State Employees, State Universities, Downstate Teachers, and Judges) to establish and maintain self-managed defined contribution plans as an alternative to traditional defined benefit plans.

• Participants may irrevocably elect to transfer their accumulated contributions to the self-managed plan and forfeit all accrued rights under the traditional benefit package.

• Caps annual salary used for calculating traditional benefit package benefits at the greater of either the new hire salary cap or the participant's salary from the 365 days before the act's effective date (with exceptions for existing employment contracts).

• Shifts a portion of employer contributions for downstate teachers and university employees from the State to the actual employer, while maintaining specified contribution rates for self-managed plan participation.

• Authorizes retirement system boards to recalculate the normal cost of benefit plans every three years and exempts implementation from State Mandates Act reimbursement requirements.