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IL SB3389
Bill
Status
Introduced
2/4/2026
Primary Sponsor
Li Arellano
Click for details
AI Summary
- Allows employers under the Downstate Teacher Article of the Illinois Pension Code to establish a self-managed plan (defined contribution) as an alternative to the traditional defined benefit retirement program
- Eligible employees may make a one-time, irrevocable election to participate in either the traditional benefit package or the self-managed plan for all future covered employment periods
- Currently eligible employees have one year after employer adoption to elect the self-managed plan; newly eligible employees have 6 months after status certification to make their election
- Employers cannot offer the self-managed plan earlier than January 1, 2027, and the Teachers' Retirement System of Illinois will serve as plan sponsor, contracting with 2-7 approved financial service providers
- Tier 2 members (those joining on or after January 1, 2011) may opt into the self-managed plan; employees who do not make an election default to the traditional defined benefit package
Legislative Description
PEN CD-TRS-SELF-MANAGED PLAN
Last Action
Added as Co-Sponsor Sen. Chris Balkema
3/4/2026
Committee Referrals
Assignments2/4/2026
Full Bill Text
No bill text available