HB6149 Summary

• Creates a "cash balance plan" for state pension participants who first begin participation on or after July 1, 2013, in Articles 2, 14, 15, 16, and 18 of the Illinois Pension Code, replacing regular pension benefits with account-based calculations.

• Establishes notional cash balance accounts credited with employee contributions (4-12% of salary depending on employee type), matching employer contributions, and investment earnings (5-10% annually), with retirement annuities calculated based on account balances.

• Sets retirement eligibility at age 67 for regular participants or age 60 with 20 years of special formula employment; provides annual benefit increases of the lesser of 3% or one-half the annual Consumer Price Index-U increase.

• Defines "Tier 2 participants" as those joining between January 1, 2011 and July 1, 2013, subject to intermediate benefit rules with reduced retirement annuity maximums (60% of final average salary) and caps on salary calculations at $106,800 plus CPI adjustments.

• Amends the State Mandates Act to exempt implementation costs from state reimbursement requirements; effective date is January 1, 2013.