IL HB1259

Establishes a self-managed defined contribution plan for eligible participants in the Illinois Municipal Retirement Fund (IMRF) as an alternative to traditional or reformed retirement benefits.

Participants may direct investments in mutual funds, collective investment funds, or other investment products and use accumulated assets to purchase annuity contracts; plan must be available within 6 months of the Act's effective date.

Participants who elect the self-managed plan receive an opening account balance equal to their separation benefit plus employer contributions matching their employee contributions with interest; employer contributions vest after 5 years of service.

Currently eligible participants and newly eligible participants (hired after plan adoption) have one year to elect participation; election is irrevocable, and participants cannot switch back to the regular benefit package.

Amends reciprocal retirement provisions in Article 20 to exclude self-managed plan benefits from proportional adjustment calculations and exempts state mandate implementation from reimbursement requirements.