IL SB4175

Municipalities in Illinois may establish Other Postemployment Benefit (OPEB) trusts to fund health and fringe benefits for retired, terminated, or disabled employees and their dependents

OPEB trusts can only be established or funded when a municipality's general fund balance exceeds its operating expenses from the prior calendar year

The municipality serves as trustee, with the municipal treasurer managing trust assets under the prudent investor standard, exempt from other statutory limitations on municipal fund investments

Municipal treasurers and trustees receive full indemnification from the municipality for actions taken regarding the OPEB trust

Trusts may be structured for federal and state tax exemption and are separate from pension benefits provided under the Illinois Pension Code