Sen. Suzy Glowiak Hilton
Filed: 4/20/2026
 
 

 
 

 
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AMENDMENT TO SENATE BILL 638 

2    AMENDMENT NO. ______. Amend Senate Bill 638 by replacing 
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Municipal Code is amended by 
5adding Section 10-4-1.5 as follows:
 
6    (65 ILCS 5/10-4-1.5 new)
7    Sec. 10-4-1.5. Other postemployment benefit trusts.
8    (a) As used in this Section, "OPEB trust" means an other 
9postemployment benefit trust established by a municipality for 
10the purpose of providing for the funding and payment of health 
11and other fringe benefits for retired or terminated employees 
12of the municipality or employees of the municipality with 
13disabilities or for their dependents and beneficiaries.
14    (b) If the moneys in the general fund of a municipality 
15exceed the municipality's operating expenses for the 
16immediately preceding calendar year, then the municipality may 
 
 
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1establish an OPEB trust or deposit moneys into an existing 
2OPEB trust.
3    (c) Trusts created by a municipality under this Section 
4are in addition to pension benefits provided by the 
5municipality for its employees under the Illinois Pension 
6Code.
7    (d) The OPEB trusts may employ such personnel and enter 
8into investment, advisory, or professional services or similar 
9contracts as deemed appropriate by the corporate authorities 
10of the municipality and recommended by the Treasurer of the 
11municipality.
12    (e) The OPEB trusts may be established in a manner so as to 
13be exempt from taxation under the provisions of applicable 
14federal and State tax laws.
15    (f) The trustee of the OPEB trusts shall be the 
16municipality. The treasurer of the municipality and the 
17trustee shall be indemnified by the municipality to the 
18fullest extent permitted by law for their actions taken with 
19respect to the OPEB trust.
20    (g) The assets of an OPEB trust shall be managed by the 
21treasurer of the municipality in any manner, subject only to 
22the prudent investor standard and any requirements of 
23applicable federal law. The limitations of any other statute 
24affecting the investment of municipal funds shall not apply to 
25OPEB trusts. The trustee shall adopt an investment policy 
26consistent with the standards articulated in Section 2.5 of 
 
 
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1the Public Funds Investment Act. The investment policy shall 
2also provide for the availability of training. Funds of the 
3OPEB trusts may be used to pay for costs of administering the 
4OPEB trusts and for the benefits for which the trusts have been 
5established in accordance with the terms of the OPEB trust 
6documents.".