HB6204 Summary

• Establishes self-managed (defined contribution) retirement plans as an alternative option for five state-funded retirement systems: General Assembly, State Employees, State Universities, Teachers, and Judges systems.

• Participants may irrevocably elect to participate in the self-managed plan and transfer their accumulated contributions from the traditional defined benefit plan.

• Imposes a salary cap on benefits calculated under the traditional plan, limiting pensionable salary to the greater of Section 1-160 amount or the employee's salary during the 365 days before the effective date.

• Requires state and employer contributions to both plans; participants earning above the salary cap must participate in the self-managed plan for excess earnings at specified contribution rates (6-8% employee, 3-7.1% employer).

• Modifies state pension contribution requirements under the Budget Stabilization Act with specific transfer amounts to the Pension Stabilization Fund beginning in Fiscal Year 2014, escalating to $1.1 billion by Fiscal Year 2034.