A bill that would create a self-managed DC plan as alternative to the DB plan that currently serves Illinois public school teachers is before the Illinois House. Rep. Thomas Morrison (R-Palatine) introduced HB 0426 on Jan. 30.
The bill would allow school districts to choose to enter the DC plan for new employees in lieu of the DB plan. It also would allow a one-time opt-out of the pension for future employees.
The plan would apply only to teachers who work for school districts that adopt the plan and only to teachers who make an election to participate in it.
The program the bill would create provides for employer contributions to be credited to each self-managed plan participant at a rate of 7.6% of the participating teacher's salary, less the amount used by the participating school system to provide disability benefits for the
teacher.
The bill has been referred to the House Rules Committee.
The bill would allow school districts to choose to enter the DC plan for new employees in lieu of the DB plan. It also would allow a one-time opt-out of the pension for future employees.
The plan would apply only to teachers who work for school districts that adopt the plan and only to teachers who make an election to participate in it.
The program the bill would create provides for employer contributions to be credited to each self-managed plan participant at a rate of 7.6% of the participating teacher's salary, less the amount used by the participating school system to provide disability benefits for the
teacher.
The bill has been referred to the House Rules Committee.
- Log in to post comments