Bill Amendment: IL SB0638 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: LOCAL GOVERNMENT-TECH

Status: 2026-06-18 - Sent to the Governor [SB0638 Detail]

Download: Illinois-2025-SB0638-Senate_Amendment_001.html

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Sen. Suzy Glowiak Hilton

Filed: 4/20/2026

 

 

 

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AMENDMENT TO SENATE BILL 638
AMENDMENT NO. ______. Amend Senate Bill 638 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Municipal Code is amended by
adding Section 10-4-1.5 as follows:
(65 ILCS 5/10-4-1.5 new)
Sec. 10-4-1.5. Other postemployment benefit trusts.
(a) As used in this Section, "OPEB trust" means an other
postemployment benefit trust established by a municipality for
the purpose of providing for the funding and payment of health
and other fringe benefits for retired or terminated employees
of the municipality or employees of the municipality with
disabilities or for their dependents and beneficiaries.
(b) If the moneys in the general fund of a municipality
exceed the municipality's operating expenses for the
immediately preceding calendar year, then the municipality may

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establish an OPEB trust or deposit moneys into an existing
OPEB trust.
(c) Trusts created by a municipality under this Section
are in addition to pension benefits provided by the
municipality for its employees under the Illinois Pension
Code.
(d) The OPEB trusts may employ such personnel and enter
into investment, advisory, or professional services or similar
contracts as deemed appropriate by the corporate authorities
of the municipality and recommended by the Treasurer of the
municipality.
(e) The OPEB trusts may be established in a manner so as to
be exempt from taxation under the provisions of applicable
federal and State tax laws.
(f) The trustee of the OPEB trusts shall be the
municipality. The treasurer of the municipality and the
trustee shall be indemnified by the municipality to the
fullest extent permitted by law for their actions taken with
respect to the OPEB trust.
(g) The assets of an OPEB trust shall be managed by the
treasurer of the municipality in any manner, subject only to
the prudent investor standard and any requirements of
applicable federal law. The limitations of any other statute
affecting the investment of municipal funds shall not apply to
OPEB trusts. The trustee shall adopt an investment policy
consistent with the standards articulated in Section 2.5 of

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the Public Funds Investment Act. The investment policy shall
also provide for the availability of training. Funds of the
OPEB trusts may be used to pay for costs of administering the
OPEB trusts and for the benefits for which the trusts have been
established in accordance with the terms of the OPEB trust
documents.".