IL HB6252

Closes state-funded retirement systems (Articles 2, 14, 15, 16, 18 of Illinois Pension Code) to new members effective immediately; current members must elect within 5 years whether to maintain participation or opt out, with non-election defaulting to opt-out status.

Requires employers under Articles 15 and 16 to establish 403(b) tax-sheltered annuity plans for new hires and offer participation to eligible employees.

Shifts health insurance costs for future employees of higher education institutions from the State to those institutions; creates new State Universities Health Insurance Security Fund (beginning July 1, 2013) for new university retirees with State covering up to 75% of costs.

Establishes new minimum pension contribution rates: 10.2% of payroll for state fiscal year 2014 and thereafter; shifts employer contribution responsibility for SURS and TRS in fiscal year 2015 onward so employers contribute 101% of prior year amount (or full annual contribution if less).

Terminates continuing appropriations to Teacher Health Insurance Security Fund and Community College Health Insurance Security Fund after fiscal year 2013; effective immediately upon becoming law.