IL HB4699

Requires the General Assembly Retirement System to implement a Tier 3 plan by July 1, 2025 that aggregates State and employee contributions in individual participant accounts used for retirement payouts, similar to a self-managed plan model.

All persons becoming participants on or after July 1, 2025 must participate in the Tier 3 plan rather than the defined benefit plan; Tier 3 participants pay 8% employee contributions and receive 7.6% State contributions.

Current Tier 1 and Tier 2 participants may voluntarily and irrevocably elect to switch to the Tier 3 plan for future service, with an option to terminate defined benefit participation and receive a transfer equal to their contribution refund.

The Tier 3 plan requires 5 years of participation for vesting in State contributions; provides investment options through the Illinois State Board of Investment and private sector providers; and allows various payout options and rollovers to other qualified retirement plans.

Makes conforming changes to the Retirement Systems Reciprocal Act and State Employees Group Insurance Act to include Tier 3 plan participants in benefit calculations and group insurance eligibility determinations.