IL SB3555

Shifts required State contributions for State Universities and Downstate Teacher retirement systems from the State to actual employers beginning in State fiscal year 2016.

Establishes new funding formula for five State-funded retirement systems with 100% funding goal by 2045, then 90% funding goal thereafter, using projected unit credit actuarial cost method.

Prohibits active participants from accruing additional service credit, receiving automatic annuity increases, or having pensionable salary exceed the amount as of the bill's effective date.

Requires State-funded retirement systems to establish self-directed retirement plans allowing participants to make voluntary contributions invested in mutual funds and annuity contracts.

Amends State Mandates Act to require implementation without State reimbursement and includes nonacceleration provision.