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| 1 | AN ACT concerning public employee benefits.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Pension Code is amended by | ||||||
| 5 | changing Section 24-105.2 as follows: | ||||||
| 6 | (40 ILCS 5/24-105.2) | ||||||
| 7 | Sec. 24-105.2. Automatic enrollment for certain employees | ||||||
| 8 | members. The Department of Central Management Services shall | ||||||
| 9 | automatically enroll in the State Employees Deferred | ||||||
| 10 | Compensation Plan any employee who, on or after July 1, 2020, 6 | ||||||
| 11 | months after the effective date of this amendatory Act of the | ||||||
| 12 | 101st General Assembly, first becomes an active a member or | ||||||
| 13 | participant of a retirement system created under Article 2, | ||||||
| 14 | 14, or 18. Any agency with employees subject to automatic | ||||||
| 15 | enrollment must systematically provide the employee data | ||||||
| 16 | necessary for enrollment to the Department of Central | ||||||
| 17 | Management Services or its designee. An employee automatically | ||||||
| 18 | enrolled under this Section shall have 3% of his or her pre-tax | ||||||
| 19 | gross compensation for each compensation period deferred into | ||||||
| 20 | his or her deferred compensation account. The Board may | ||||||
| 21 | increase the default percentage amount of compensation | ||||||
| 22 | deferred into employee accounts. | ||||||
| 23 | An employee shall have 30 days from the start date of | ||||||
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| 1 | employment to elect to not participate in the deferred | ||||||
| 2 | compensation plan or to elect to increase or reduce the amount | ||||||
| 3 | of pre-tax gross compensation deferred. An employee shall be | ||||||
| 4 | automatically enrolled in the Plan beginning the first day of | ||||||
| 5 | the pay period following the employee's thirtieth day of | ||||||
| 6 | employment. An employee who has been automatically enrolled in | ||||||
| 7 | the Plan may elect, within 90 days of enrollment, to withdraw | ||||||
| 8 | from the Plan and receive a refund of amounts deferred, plus or | ||||||
| 9 | minus any applicable earnings, investment fees, and | ||||||
| 10 | administrative fees. An employee making such an election shall | ||||||
| 11 | forfeit all employer matching contributions, if any, made | ||||||
| 12 | prior to the election. Any refunded amount shall be included | ||||||
| 13 | in the employee's gross income for the taxable year in which | ||||||
| 14 | the refund is issued.
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| 15 | As soon as practicable, the Board shall establish annual, | ||||||
| 16 | automatic increases to employee contribution rates for | ||||||
| 17 | employees who are automatically enrolled in the Plan pursuant | ||||||
| 18 | to this Section. The amount of automatic annual increases in | ||||||
| 19 | any 12-month period shall not exceed 1% of compensation. | ||||||
| 20 | Employees may elect to not receive automatic annual increases | ||||||
| 21 | in a manner described by the Board. | ||||||
| 22 | (Source: P.A. 101-277, eff. 1-1-20.)
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| 23 | Section 99. Effective date. This Act takes effect July 1, | ||||||
| 24 | 2021.
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