SB1801 Summary

• Amends the Illinois Pension Code to require each pension system board to establish a voluntary defined contribution plan within one year to address retirement preparedness gaps for defined benefit plan participants not on track to maintain their standard of living in retirement.

• Designates "Tier 1 participants" as those who first became participants before January 1, 2011, and "Tier 2 participants" as those who first became participants on or after January 1, 2011.

• Requires automatic enrollment of new Tier 2 participants in the defined contribution plan unless they opt out within 60 days; allows Tier 1 and existing Tier 2 participants to voluntarily enroll.

• Establishes plan requirements including a default investment option, distribution options meeting Internal Revenue Code requirements, and contribution rates to be determined by each board.

• Repeals certain definitions from Public Act 98-599 that have been held unconstitutional and takes effect immediately upon becoming law.