SB3806 101ST GENERAL ASSEMBLY

LRB101 20290 RPS 69832 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3806

Introduced 2/14/2020, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

40 ILCS 5/24-105.2

Amends the Deferred Compensation Article of the Illinois Pension Code. Provides that the Department of Central Management Services shall automatically enroll in the State Employees Deferred Compensation Plan any employee who is a member under the Chicago Teacher Article, regardless of when the employee first became a member under that Article. Provides that an employee shall be automatically enrolled beginning the first day of the pay period following the effective date if the employee is a member under the Chicago Teacher Article on the effective date of the amendatory Act. Effective January 1, 2021.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 24-105.2 as follows:

(40 ILCS 5/24-105.2)

Sec. 24-105.2. Automatic enrollment for certain members. The Department of Central Management Services shall automatically enroll in the State Employees Deferred Compensation Plan any employee who, on or after July 1, 2020 (6 months after the effective date of Public Act 101-277) this amendatory Act of the 101st General Assembly, first becomes a member or participant of a retirement system created under Article 2, 14, or 18 and shall automatically enroll in the State Employees Deferred Compensation Plan any employee who is a member under a pension fund created under Article 17, regardless of when the employee first became a member under Article 17. An employee automatically enrolled under this Section shall have 3% of his or her pre-tax gross compensation for each compensation period deferred into his or her deferred compensation account.

An employee shall have 30 days from the start date of employment to elect to not participate in the deferred compensation plan or to elect to increase or reduce the amount of pre-tax gross compensation deferred. An employee shall be automatically enrolled in the Plan beginning the first day of the pay period following the employee's thirtieth day of employment or the pay period following the effective date of this amendatory Act of the 101st General Assembly if the employee is a member under Article 17 on the effective date of this amendatory Act of the 101st General Assembly. An employee who has been automatically enrolled in the Plan may elect, within 90 days of enrollment, to withdraw from the Plan and receive a refund of amounts deferred. An employee making such an election shall forfeit all employer matching contributions, if any, made prior to the election. Any refunded amount shall be included in the employee's gross income for the taxable year in which the refund is issued.

(Source: P.A. 101-277, eff. 1-1-20.)

Section 99. Effective date. This Act takes effect January 1, 2021.