SB4175

SB4175 allows Illinois municipalities to establish or contribute to OPEB trusts for retired or terminated employees' health and fringe benefits.

SB4175 amends the Illinois Municipal Code to permit municipalities to establish or deposit moneys into Other Postemployment Benefit (OPEB) trusts if their general fund exceeds operating expenses. These trusts, exempt from taxation, provide health and fringe benefits for retired or terminated employees and their dependents. The municipality serves as the trustee, and the treasurer manages the assets according to the prudent investor standard. The bill also ensures the municipality indemnifies the treasurer and trustee for their actions related to the OPEB trust.