Illinois General Assembly - Full Text of SB1430
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Full Text of SB1430  102nd General Assembly

SB1430sam001 102ND GENERAL ASSEMBLY

Sen. Donald P. DeWitte

Filed: 3/29/2021

 

 


 

 


 
10200SB1430sam001LRB102 11208 RPS 24493 a

1
AMENDMENT TO SENATE BILL 1430

2    AMENDMENT NO. ______. Amend Senate Bill 1430 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. This Act may be referred to as the Local
5Pension Modernization Act.
 
6    Section 5. The Illinois Pension Code is amended by adding
7Section 7-101.5 as follows:
 
8    (40 ILCS 5/7-101.5 new)
9    Sec. 7-101.5. Alternative retirement plan; local control
10of benefits.
11    (a) The governing body of a municipality or
12instrumentality may, at any time on or after the effective
13date of this amendatory Act of the 102nd General Assembly,
14provide by ordinance or resolution, whichever is applicable,
15for an alternative retirement plan, either in addition to or

 

 

10200SB1430sam001- 2 -LRB102 11208 RPS 24493 a

1in lieu of the existing plan under this Article, for its
2eligible new employees. The alternative retirement plan shall
3apply only to persons who have not participated in the
4existing plan under this Article.
5    (b) The alternative retirement plan may include a
6defined-benefit component, a defined-contribution component,
7or both, and may, but is not required to, include disability or
8survivor benefits and any other provisions or benefits that
9are permitted under federal law. The alternative retirement
10plan is not required to provide any minimum level of benefits
11and need not provide any benefits at all, other than mandatory
12Social Security coverage if applicable.
13    (c) Service credit received under an alternative
14retirement plan may not be transferred to any other pension
15fund or retirement system and may not be used under the
16Retirement Systems Reciprocal Act.
17    (d) Providing an alternative retirement plan does not
18release the municipality or instrumentality from the
19obligation of continuing to participate under this Article
20with regard to participants in the existing retirement plan.
21In no event may the municipality or instrumentality in any way
22diminish or impair the rights or benefits of participants in
23the existing retirement plan.
24    (e) Persons participating in an alternative retirement
25plan under this Section shall be deemed to be members of the
26Fund who participate in an alternative retirement plan and

 

 

10200SB1430sam001- 3 -LRB102 11208 RPS 24493 a

1shall remain subject to the provisions of the Agreement with
2the State Agency, as provided in Section 7-170, for Social
3Security purposes to the extent permitted under federal law.
4Notwithstanding any provision of this Article to the contrary,
5the alternative retirement plan need not comply with any other
6mandatory provision of the existing retirement plan.".