IL SB1826

Authorizes municipal governing bodies to establish alternative retirement plans for new employees, either in addition to or instead of the existing Illinois Municipal Retirement Fund (IMRF) plan.

Alternative plans may include defined-benefit components, defined-contribution components, or both, and may optionally provide disability and survivor benefits permitted under federal law.

Alternative plans are not required to provide any minimum level of benefits and need not provide any benefits beyond mandatory Social Security coverage if applicable.

Service credit earned under an alternative plan cannot be transferred to other pension funds and cannot be used under the Retirement Systems Reciprocal Act.

Municipalities offering alternative plans remain obligated to continue participating in IMRF for existing employees and cannot diminish or impair their rights or benefits.