IL HB3138

Amends the Downstate Teacher Article of the Illinois Pension Code to allow school districts to offer alternative qualifying defined contribution plans instead of the system's default plan.

Alternative qualifying plans must meet four criteria: single vendor for recordkeeping, no annuities or separate accounts, allow cost-free employee fund transfers, and prohibit recordkeepers from cross-selling non-plan products.

School districts offering alternative qualifying plans must automatically enroll new employees following the same procedures as the system's default plan, including 3% initial contributions and automatic annual increases up to 2%.

Requires school districts to file a board resolution certifying their alternative plan meets the specified criteria and submit it to the System as soon as practicable.

Takes effect immediately upon becoming law.