PENCD-TRS-DEFINED CONTRIBUTION

Summary

The bill lets a person who first joins the Illinois Teachers' Retirement System at age 50 or older, and who has no existing service credit, elect to participate in a defined‑contribution plan instead of the traditional defined‑benefit pension. The employee must contribute 7.5% of pre‑tax salary and the employer adds 6%. It matters because it offers a retirement option with potentially lower long‑term liability for the system and a different savings structure for older new hires.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

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