Bill Text: IL SB1675 | 2021-2022 | 102nd General Assembly | Chaptered

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Bill Title: Amends the Deferred Compensation Article of the Illinois Pension Code. In a provision concerning automatic enrollment in the deferred compensation plan for employees under the General Assembly, State Employee, or Judges Article, provides that the Illinois State Board of Investment may increase the default percentage amount of compensation deferred into employee accounts. Provides that any agency with employees subject to automatic enrollment must systematically provide the employee data necessary for enrollment to the Department of Central Management Services or its designee. Includes any applicable earnings, investment fees, and administrative fees in the refund of amounts deferred for an employee who elects to withdraw from the plan within 90 days of enrollment. Provides that the Board shall establish annual, automatic increases to employee contribution rates for employees who are automatically enrolled in the deferred compensation plan. Provides that the amount of automatic annual increases to employee contribution rates in any 12-month period shall not exceed 1% of compensation. Provides that employees may elect to not receive automatic annual increases in a manner described by the Board. Makes other changes. Effective July 1, 2021.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Passed) 2021-07-30 - Public Act . . . . . . . . . 102-0219 [SB1675 Detail]

Download: Illinois-2021-SB1675-Chaptered.html

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Public Act 102-0219
SB1675 Enrolled LRB102 14094 RPS 19446 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Section 24-105.2 as follows:
(40 ILCS 5/24-105.2)
Sec. 24-105.2. Automatic enrollment for certain employees
members. The Department of Central Management Services shall
automatically enroll in the State Employees Deferred
Compensation Plan any employee who, on or after July 1, 2020, 6
months after the effective date of this amendatory Act of the
101st General Assembly, first becomes an active a member or
participant of a retirement system created under Article 2,
14, or 18. Any agency with employees subject to automatic
enrollment must systematically provide the employee data
necessary for enrollment to the Department of Central
Management Services or its designee. 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. The Board may
increase the default percentage amount of compensation
deferred into employee accounts.
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, plus or
minus any applicable earnings, investment fees, and
administrative fees. 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.
As soon as practicable, the Board shall establish annual,
automatic increases to employee contribution rates for
employees who are automatically enrolled in the Plan pursuant
to this Section. The amount of automatic annual increases in
any 12-month period shall not exceed 1% of compensation.
Employees may elect to not receive automatic annual increases
in a manner described by the Board.
(Source: P.A. 101-277, eff. 1-1-20.)
Section 99. Effective date. This Act takes effect July 1,
2021.