IL HB2978

Establishes a self-directed retirement plan for the General Assembly Retirement System, with mandatory participation for new participants (Tier 3) beginning on the bill's effective date.

Allows current Tier 1 participants (before January 1, 2011) and Tier 2 participants (January 1, 2011 to effective date) to make an irrevocable election to switch from the defined benefit plan to the self-directed plan.

Sets participant contributions at 8% of salary and employer contributions at 7% of salary for all self-directed plan participants, with immediate full vesting upon enrollment.

Establishes an initial salary cap of $106,800 for annuity calculations for new participants, with annual increases limited to the lesser of 3% or the consumer price index.

Repeals existing Section 2-105.1 of the Illinois Pension Code.