December 26, 2012 (PLANSPONSOR.com) - The Illinois House is seeking to create a cash balance plan for educators.
Under HB6258, the plan would cover new hires of state universities, teachers’ retirement systems and legacy tier II participants who first contributed after January 1, 2011.
Participation in the plan would begin no earlier than July 1, 2013.
The bill also increases the retirement age for certain Tier I members and participants (those who first contributed prior to January 1, 2011); changes the conditions of eligibility for, and the amount of, automatic annual increases for Tier I retirees; increases required employee contributions for Tier I members and participants; limits pensionable salary for Tier I participants; and changes the required state contribution to each of the affected retirement systems so that those systems are 100% funded by 2043.
The bill was last referred to the Rules Committee December 5 and can be viewed here.