IL HB4532

Authorizes the State Universities Retirement System (SURS) to establish and administer a self-managed defined contribution plan as an alternative to the traditional defined benefit retirement program for eligible college and university employees.

Allows employers covered by SURS to irrevocably elect to adopt the self-managed plan, which offers employees the ability to direct investments in mutual funds, collective investment funds, and annuity contracts with combined employee and employer contributions.

Requires the System to contract with 2-7 service providers (insurance companies, mutual funds, banks, or financial institutions) to administer the plan and offer funding vehicles, evaluated based on benefit quality, cost-effectiveness, suitability, financial stability, and employee recruitment/retention impact.

Establishes employer contributions at 7.6% of participating employee salary (minus disability benefit costs up to 1%), with employee contributions matching other SURS participants' rates and made as employer pick-ups under Internal Revenue Code Section 414(h).

Specifies vesting occurs after 5 years of service, death with 1.5+ years of service, or retirement eligibility; provides for default investment fund placement if participants fail to direct investments; and allows plan termination with affected participants retaining rights to other SURS retirement programs.