IL HB2760

Amends the Illinois Pension Code to authorize the State Universities Retirement System to establish a self-managed defined contribution plan as an alternative to the traditional defined benefit program for eligible university employees.

Allows employees to direct investment of contributions among various investment options including mutual funds, collective investment funds, and annuity contracts, with a default investment fund for those who fail to make a selection.

Provides employer contributions of 7.6% of participating employee salary (minus disability benefit costs up to 1%), with amounts treated as employer "pick-up" contributions under federal law and paid by the State through appropriations.

Vesting occurs upon completion of 5 years of service, death while employed with at least 1.5 years of service, or election to retire; employees who withdraw before retirement eligibility forfeit all service credit and accrued rights.

Requires the System to offer employees options to establish, contribute to, and transfer any guaranteed or vested portion of traditional accounts into qualified in-plan Roth accounts without requiring a distribution, consistent with the federal American Taxpayer Relief Act of 2012.