HB2749 Summary

• Authorizes municipalities, cities, counties, school districts, community colleges, and other local government units to establish alternative retirement plans for new employees who have not participated in existing pension plans.

• Alternative retirement plans may include defined-benefit components, defined-contribution components, or both, with optional disability and survivor benefits, and are not required to provide any minimum level of benefits beyond mandatory Social Security coverage.

• Service credit earned under alternative retirement plans cannot be transferred to other pension funds or used under the Retirement Systems Reciprocal Act.

• Local governments establishing alternative plans must continue participating in and funding existing retirement plans for current participants, with no reduction or impairment of their benefits.

• Employers are exempt from mandatory collective bargaining regarding the adoption or implementation of alternative retirement plans under the Illinois Public Labor Relations Act and Illinois Educational Labor Relations Act.