Illinois General Assembly - Full Text of HB4926
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Full Text of HB4926  102nd General Assembly

HB4926sam001 102ND GENERAL ASSEMBLY

Sen. Robert F. Martwick

Filed: 3/29/2022

 

 


 

 


 
10200HB4926sam001LRB102 24854 RPS 38287 a

1
AMENDMENT TO HOUSE BILL 4926

2    AMENDMENT NO. ______. Amend House Bill 4926 on page 1,
3line 5, by replacing "and 14-152.1" with "14-152.1, and
424-105.2 and adding Section 24-105.3"; and
 
5on page 42, immediately below line 18, by inserting the
6following:
 
7    "(40 ILCS 5/24-105.2)
8    Sec. 24-105.2. Automatic enrollment for certain employees.
9    The Department of Central Management Services shall
10automatically enroll in the State Employees Deferred
11Compensation Plan any employee who, on or after July 1, 2020,
12becomes an active member or participant of a retirement system
13created under Article 2, 14, or 18. Any agency with employees
14subject to automatic enrollment must systematically provide
15the employee data necessary for enrollment to the Department
16of Central Management Services or its designee. An employee

 

 

10200HB4926sam001- 2 -LRB102 24854 RPS 38287 a

1automatically enrolled under this Section shall have 3% of his
2or her pre-tax gross compensation for each compensation period
3deferred into his or her deferred compensation account. The
4Board may increase the default percentage amount of
5compensation deferred into employee accounts.
6    An employee shall have 30 days from the start date of
7employment to elect to not participate in the deferred
8compensation plan or to elect to increase or reduce the amount
9of pre-tax gross compensation deferred. An employee shall be
10automatically enrolled in the Plan beginning the first day of
11the pay period following the employee's thirtieth day of
12employment. An employee who has been automatically enrolled in
13the Plan may elect, within 90 days of enrollment, to withdraw
14from the Plan and receive a refund of amounts deferred, plus or
15minus any applicable earnings, investment fees, and
16administrative fees. An employee making such an election shall
17forfeit all employer matching contributions, if any, made
18prior to the election. Any refunded amount shall be included
19in the employee's gross income for the taxable year in which
20the refund is issued.
21    As soon as practicable, the Board shall establish a plan
22for annual, automatic increases to employee contribution rates
23for employees who are automatically enrolled in the Plan
24pursuant to this Section. The amount of automatic annual
25increases in any 12-month period shall not exceed 1% of
26compensation. Employees may elect to not receive automatic

 

 

10200HB4926sam001- 3 -LRB102 24854 RPS 38287 a

1annual increases in a manner described by the Board.
2(Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.)
 
3    (40 ILCS 5/24-105.3 new)
4    Sec. 24-105.3. One-time automatic enrollment for certain
5employees. As soon as practicable, but no later than January
61, 2024, the Department of Central Management Services shall
7automatically enroll into the State Employees Deferred
8Compensation Plan all current State employees who are active
9members of a retirement system created under Article 2, 14, or
1018 and who are not contributing to the Plan on the date of
11automatic enrollment under this Section. Any agency with
12employees subject to automatic enrollment must systematically
13provide the employee data necessary for enrollment to the
14Department of Central Management Services or its designee. An
15employee automatically enrolled under this Section shall have
163%, or any other percentage determined by the Board pursuant
17to Section 24-105.2, of his or her pretax gross compensation
18for each compensation period deferred into his or her deferred
19compensation account.
20    An employee shall have a one-calendar-month opt-out period
21prior to being automatically enrolled in the Plan, during
22which the employee may elect to not participate in the Plan or
23elect to increase or reduce the amount of pretax gross
24compensation deferred. An employee who does not opt out during
25the one-calendar-month period shall be automatically enrolled

 

 

10200HB4926sam001- 4 -LRB102 24854 RPS 38287 a

1in the Plan beginning the first day of the pay period of the
2month following the end of the opt-out period. An employee who
3has been automatically enrolled in the Plan may elect, within
490 days after enrollment, to withdraw from the Plan and
5receive a refund of the amounts deferred, plus or minus any
6applicable earnings, investment fees, and administrative fees.
7An employee making such an election shall forfeit all employer
8matching contributions, if any, made prior to the election.
9Any refunded amount shall be included in the employee's gross
10income for the taxable year in which the refund is issued.
11    Beginning one year after the date of automatic enrollment
12under this Section, or as soon as practicable thereafter, the
13Board shall establish a plan for automatic increases to
14employee contribution rates for employees who are
15automatically enrolled in the Plan pursuant to this Section.
16The amount of automatic increases in any 12-month period shall
17not exceed 1% of compensation. Employees may elect to not
18receive automatic increases in a manner described by the
19Board."; and
 
20on page 42, line 20, after "law", by inserting ", except that
21the changes to the Illinois Pension Code amending Section
2224-105.2 and adding Section 24-105.3 take effect July 1,
232022".