Bill Text: IL HB3082 | 2019-2020 | 101st General Assembly | Chaptered
Bill Title: Reinserts the provisions of the introduced bill with the following changes. Provides that if a participating employee fails to direct the investment of amounts deferred into the various investment options offered to the participant, the amounts deferred shall be invested in the Plan's default investment fund and the investment shall be deemed to have been made at the participant's investment direction. Provides that an employee automatically enrolled into the deferred compensation plan shall have 3% of his or her pre-tax gross compensation (instead of gross compensation) for each compensation period deferred into his or her deferred compensation account. Provides that an employee shall have 30 days from the start date of employment (instead of 6 months from the date of enrollment) to elect to not participate in the deferred compensation plan or to elect to increase or reduce the amount of gross compensation deferred. Provides that an employee shall be automatically enrolled in the deferred compensation plan beginning the first day of the pay period following the employee's thirtieth day of employment. Makes changes to provisions concerning withdrawal from the deferred compensation plan. Provides that an employee electing to withdraw from the deferred compensation plan shall forfeit all employer matching contributions, if any, made prior to the election. Provides that any refunded amount shall be included in the employee's gross income for the taxable year in which the refund is issued.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Passed) 2019-08-09 - Public Act . . . . . . . . . 101-0277 [HB3082 Detail]
Download: Illinois-2019-HB3082-Chaptered.html
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Public Act 101-0277 | ||||
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Section 24-105 and by adding Section 24-105.2 as follows:
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(40 ILCS 5/24-105) (from Ch. 108 1/2, par. 24-105)
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Sec. 24-105.
The State Employees Deferred Compensation | ||||
Plan shall be
administered by the Department of Central | ||||
Management Services
subject to the general
supervision of the | ||||
Illinois State Board of Investment. Participation in
such plan | ||||
shall be by a specific written agreement between each such
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employee and the State which agreement shall provide for the | ||||
deferral of
such amount of compensation as requested by the | ||||
employee. With each
distribution of compensation to a | ||||
participating employee, the employee
shall receive a | ||||
memorandum of the amount by which his gross compensation
for | ||||
the period involved is reduced by reason of the deferment of
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compensation, which amount shall not be included as a part of | ||||
his gross
compensation as to that period.
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Funds retained by the State as deferred compensation | ||||
pursuant to a
written deferred compensation agreement between | ||||
the State and
participating employees, may be invested in such | ||||
investments as are
deemed acceptable by the Illinois State |
Board of Investment including,
but not limited to, life | ||
insurance or annuity contracts or mutual funds.
All such | ||
insurance, annuities, mutual funds, or other such investments
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utilized under this Plan shall have been reviewed and selected | ||
by the
Board based on a competitive bidding process as | ||
established by such
specifications and considerations as are | ||
deemed appropriate by the
Board. Nothing in this Section should | ||
be construed as requiring a
limitation on the number and | ||
variety of insurance, annuity or mutual
fund contracts which | ||
may be selected as a result of this bidding
process. The State | ||
Board of Investment may also invest any funds retained
by the | ||
State pursuant to a written deferred compensation agreement | ||
between
the State and participating employees in share accounts | ||
or share certificate
accounts of State or federal credit | ||
unions, the accounts of which are insured
as required by The | ||
Illinois Credit Union Act or the Federal Credit Union
Act, as | ||
applicable. If a participating employee fails to direct the | ||
investment of amounts deferred into the various investment | ||
options offered to the participant, the amounts deferred shall | ||
be invested in the Plan's default investment fund and the | ||
investment shall be deemed to have been made at the | ||
participant's investment direction. Any income and gain | ||
resulting from the investment of
a deferred compensation | ||
account may be paid to the participant as additional
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compensation
for continued service during the period of | ||
participation or be used in part
for administrative expenses, |
all in accordance with the plan. Such investments
and payments | ||
shall not be construed to be prohibited uses of the general
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assets of the State.
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(Source: P.A. 82-789.)
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(40 ILCS 5/24-105.2 new) | ||
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 6 months after | ||
the effective date of 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. 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. 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.
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