Bill Text: IL HB4923 | 2017-2018 | 100th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Secure Choice Savings Program Act. Provides that an investment option may be a conservative fund rather than a conservative principal protection fund. Provides that the Illinois Secure Choice Savings Board may establish deadlines for payment of payroll deductions to the Fund. Provides for audits on a fiscal year basis rather than a calendar year basis and report by the following January rather than July. Requires the Treasurer to prepare annual reports on benefits provided by the Program and post the report on the Program website. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Vetoed) 2018-11-28 - Bill Dead - No Positive Action Taken - Amendatory Veto [HB4923 Detail]

Download: Illinois-2017-HB4923-Engrossed.html



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1 AN ACT concerning employment.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Secure Choice Savings Program Act
5is amended by changing Sections 45, 65, and 80 as follows:
6 (820 ILCS 80/45)
7 Sec. 45. Investment options.
8 (a) The Board shall establish as an investment option a
9life-cycle fund with a target date based upon the age of the
10enrollee. This shall be the default investment option for
11enrollees who fail to elect an investment option unless and
12until the Board designates by rule a new investment option as
13the default as described in subsection (c) of this Section.
14 (b) The Board may also establish any or all of the
15following additional investment options:
16 (1) a conservative principal protection fund;
17 (2) a growth fund;
18 (3) a secure return fund whose primary objective is the
19 preservation of the safety of principal and the provision
20 of a stable and low-risk rate of return; if the Board
21 elects to establish a secure return fund, the Board may
22 procure any insurance, annuity, or other product to insure
23 the value of individuals' accounts and guarantee a rate of

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1 return; the cost of such funding mechanism shall be paid
2 out of the Fund; under no circumstances shall the Board,
3 Program, Fund, the State, or any participating employer
4 assume any liability for investment or actuarial risk; the
5 Board shall determine whether to establish such investment
6 options based upon an analysis of their cost, risk profile,
7 benefit level, feasibility, and ease of implementation;
8 (4) an annuity fund.
9 The Board shall determine whether to establish any of the
10additional investment options based upon an analysis of its
11cost, risk profile, benefit level, feasibility, and ease of
12implementation.
13 (c) If the Board elects to establish a secure return fund,
14the Board shall then determine whether such option shall
15replace the target date or life-cycle fund as the default
16investment option for enrollees who do not elect an investment
17option. In making such determination, the Board shall consider
18the cost, risk profile, benefit level, and ease of enrollment
19in the secure return fund. The Board may at any time thereafter
20revisit this question and, based upon an analysis of these
21criteria, establish either the secure return fund or the
22life-cycle fund as the default for enrollees who do not elect
23an investment option.
24(Source: P.A. 98-1150, eff. 6-1-15.)
25 (820 ILCS 80/65)

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1 Sec. 65. Payments. Employee contributions deducted by the
2participating employer through payroll deduction shall be paid
3by the participating employer to the Fund using one or more
4payroll deposit retirement savings arrangements established by
5the Board under subsection (h) of Section 30 of this Act,
6either:
7 (1) on or before the last day of the month following
8 the month in which the compensation otherwise would have
9 been payable to the employee in cash; or
10 (2) by a before such later deadline prescribed by the
11 Board for making such payments, but not later than the due
12 date for the deposit of tax required to be deducted and
13 withheld relating to collection of income tax at source on
14 wages or for the deposit of tax required to be paid under
15 the unemployment insurance system for the payroll period to
16 which such payments relate.
17(Source: P.A. 98-1150, eff. 6-1-15.)
18 (820 ILCS 80/80)
19 Sec. 80. Audit and reports.
20 (a) The Board shall annually submit an audited financial
21report, prepared in accordance with generally accepted
22accounting principles, on the operations of the Program during
23each fiscal calendar year by January July 1 of the following
24year to the Governor, the Comptroller, the State Treasurer, and
25the General Assembly. The annual audit shall be made by an

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1independent certified public accountant and shall include, but
2is not limited to, direct and indirect costs attributable to
3the use of outside consultants, independent contractors, and
4any other persons who are not State employees for the
5administration of the Program.
6 (b) In addition to any other statements or reports required
7by law, the Board shall provide periodic reports at least
8annually to participating employers, reporting the names of
9each enrollee employed by the participating employer and the
10amounts of contributions made by the participating employer on
11behalf of each employee during the reporting period, as well as
12to enrollees, reporting contributions and investment income
13allocated to, withdrawals from, and balances in their Program
14accounts for the reporting period. Such reports may include any
15other information regarding the Program as the Board may
16determine.
17 (c) The State Treasurer shall annually prepare a report in
18consultation with the Board that includes a summary of the
19benefits provided by the Program each fiscal year, including
20the number of enrollees in the Program, the percentage and
21amounts of investment options and rates of return, and such
22other information that is relevant to make a full, fair, and
23effective disclosure of the operations of the Program and the
24Fund. The report shall be made available on the Program website
25by January of the following year.
26(Source: P.A. 98-1150, eff. 6-1-15; 99-464, eff. 8-26-15.)

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1 Section 99. Effective date. This Act takes effect upon
2becoming law.
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