HB1271 Summary

• Establishes a self-managed (defined contribution) retirement plan option for Illinois Municipal Retirement Fund (IMRF) participants who first become members on or after January 1, 2011.

• Allows eligible participants to direct investments through mutual funds, collective investment funds, or other approved investment products and purchase annuity contracts instead of traditional defined benefit plans.

• Requires IMRF to make the self-managed plan available within 6 months after the bill becomes effective, with participants able to elect participation within specific timeframes.

• Provides employer contributions equal to employee contributions for self-managed plan participants; participant contributions made as employer pick-up under IRS Section 414(h).

• Amends the State Mandates Act to exempt implementation costs from state reimbursement requirements.