IL SB1452

Defines "Tier 3 participant" as a General Assembly Retirement System member who first becomes a participant on or after January 1, 2017.

Requires the General Assembly Retirement System to establish a defined contribution plan for all Tier 3 participants by July 1, 2016, with the Illinois State Board of Investment serving as plan sponsor.

Tier 3 participants are barred from the traditional defined benefit retirement plan available to Tier 1 and Tier 2 participants.

State contributions to Tier 3 accounts equal 25% of employee contributions, capped at 2% of salary, with 3-year vesting requirement for State contributions.

Defined contribution plan must provide multiple investment options, payout methods for retirees and survivors, optional disability benefits, and rollover capabilities to other qualified retirement plans.