Illinois General Assembly - Full Text of SB3612
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Full Text of SB3612  103rd General Assembly

SB3612 103RD GENERAL ASSEMBLY

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3612

 

Introduced 2/9/2024, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-239 new
40 ILCS 5/6-231 new
40 ILCS 5/8-244.5 new

    Amends the Chicago Police, Chicago Firefighter, and Chicago Municipal Articles of the Illinois Pension Code. Provides that a person who becomes a member on or after January 1, 2025 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. Provides that a member subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired. Provides that if another option is not chosen by the member, the default employee contribution to the account shall be 3% of the member's salary. Provides that the plan administrator may automatically increase members contributions by no more than 1% per year, and a member may choose to opt out of the automatic increases. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB103 39182 RPS 69328 b

 

 

A BILL FOR

 

SB3612LRB103 39182 RPS 69328 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by adding
5Sections 5-239, 6-231 and 8-244.5 as follows:
 
6    (40 ILCS 5/5-239 new)
7    Sec. 5-239. Automatic enrollment into a tax qualified
8retirement plan. Beginning on January 1, 2025, all persons who
9become policemen on or after January 1, 2025 shall be
10automatically enrolled into a federal tax qualified pre-tax
11retirement plan that is otherwise allowed by State and federal
12law. A policeman subject to automatic enrollment shall have
13the option to opt out of the plan and shall be informed of that
14option within 30 days after being hired.
15    If another option is not chosen by the policeman, the
16default employee contribution to the account shall be 3% of
17his or her salary. The plan administrator may automatically
18increase members contributions by no more than 1% per year,
19and a policeman may choose to opt out of the automatic
20increases.
 
21    (40 ILCS 5/6-231 new)
22    Sec. 6-231. Automatic enrollment into a tax qualified

 

 

SB3612- 2 -LRB103 39182 RPS 69328 b

1retirement plan. Beginning on January 1, 2025, all persons who
2become firemen on or after January 1, 2025 shall be
3automatically enrolled into a federal tax qualified pre-tax
4retirement plan that is otherwise allowed by State and federal
5law. A fireman subject to automatic enrollment shall have the
6option to opt out of the plan and shall be informed of that
7option within 30 days after being hired.
8    If another option is not chosen by the fireman, the
9default employee contribution to the account shall be 3% of
10his or her salary. The plan administrator may automatically
11increase firemen's contributions by no more than 1% per year,
12and a fireman may choose to opt out of the automatic increases.
 
13    (40 ILCS 5/8-244.5 new)
14    Sec. 8-244.5. Automatic enrollment into a tax qualified
15retirement plan. Beginning on January 1, 2025, all persons who
16become employees on or after January 1, 2025 shall be
17automatically enrolled into a federal tax qualified pre-tax
18retirement plan that is otherwise allowed by State and federal
19law. An employee subject to automatic enrollment shall have
20the option to opt out of the plan and shall be informed of that
21option within 30 days after being hired.
22    If another option is not chosen by the employee, the
23default employee contribution to the account shall be 3% of
24his or her salary. The plan administrator may automatically
25increase employees' contributions by no more than 1% per year,

 

 

SB3612- 3 -LRB103 39182 RPS 69328 b

1and an employee may choose to opt out of the automatic
2increases.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.