IL HB2745

Establishes a self-directed retirement plan for the General Assembly Retirement System that allows Tier 3 participants (new members after the effective date) to accumulate retirement assets through a combination of employee contributions (8% of salary) and employer contributions (7% of salary).

Permits existing Tier 1 participants (members before January 1, 2011) and Tier 2 participants (members from January 1, 2011 to the effective date) to make an irrevocable election to switch from the defined benefit plan to the self-directed retirement plan for future service.

Participants in the self-directed plan become immediately vested in their own contributions, employer contributions, and all investment returns on those contributions upon their first day of participation in the plan.

Sets pensionable salary for new participants at the average final monthly salary based on the highest 96 consecutive months of service within the last 120 months, with a cap of $106,800 annually adjusted by the lesser of 3% or the consumer price index increase.

Repeals Section 2-105.1 of the Illinois Pension Code as part of the transition to the new self-directed retirement plan structure.