Bill Text: IL SB3683 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Cook County, Cook County Forest Preserve District, and Metropolitan Water Reclamation District (MWRD) Articles of the Illinois Pension Code. Provides that the employer shall provide a federal tax qualified pre-tax retirement plan otherwise allowed by State and federal law for each employee. Provides that the employer shall automatically enroll employees who become employees or after January 1, 2025 into a federal tax qualified pre-tax retirement plan. Provides for a default contribution amount; collective bargaining; a retirement savings committee; plan document; review of the plan document by the Public Pension Division of the Department of Insurance; and fees charged by the Public Pension Division of the Department of Insurance to the municipality. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-09 - Referred to Assignments [SB3683 Detail]

Download: Illinois-2023-SB3683-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3683 Introduced 2/9/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40 ILCS 5/9-242 new
40 ILCS 5/10-110 new
40 ILCS 5/13-314.5 new
30 ILCS 805/8.48 new
Amends the Cook County, Cook County Forest Preserve District, and Metropolitan Water Reclamation District (MWRD) Articles of the Illinois Pension Code. Provides that the employer shall provide a federal tax qualified pre-tax retirement plan otherwise allowed by State and federal law for each employee. Provides that the employer shall automatically enroll employees who become employees or after January 1, 2025 into a federal tax qualified pre-tax retirement plan. Provides for a default contribution amount; collective bargaining; a retirement savings committee; plan document; review of the plan document by the Public Pension Division of the Department of Insurance; and fees charged by the Public Pension Division of the Department of Insurance to the municipality. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB103 39183 RPS 69329 b
A BILL FOR
SB3683 LRB103 39183 RPS 69329 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 adding
Sections 9-242, 10-110, and 13-314.5 as follows:
(40 ILCS 5/9-242 new)
Sec. 9-242. Automatic enrollment in optional savings plan.
(a) On and after January 1, 2025, the county must provide a
federal tax qualified pre-tax retirement plan otherwise
allowed by State and federal law for each employee. Any
employee who becomes an employee on or after January 1, 2025
must be automatically enrolled in the federal tax qualified
pre-tax retirement plan established under this Section;
however, an employee may opt out of the federal tax qualified
pre-tax retirement plan, as provided in this Section.
(b) If another option is not chosen by the employee,
collective bargaining unit, or a retirement savings committee,
the default employee contribution to this account shall be 2%
of salary. Any employee may terminate participation in the
benefit at any time, subject to any restrictions posted within
the plan document. The plan shall be designed to receive
employee contributions, but may also receive employer
contributions based on the decision of the county. The

SB3683 - 2 - LRB103 39183 RPS 69329 b
administration of this benefit shall be a permissive subject
of collective bargaining; however, if the county offers the
same benefit to employees under multiple collective bargaining
units, then the county may create a retirement savings
committee that shall include one representative appointed by
each collective bargaining unit and one representative
appointed by the president of the county. If there is a
retirement savings committee, the committee shall approve of
the administration of this benefit by affirmative vote prior
to the creation or change of the benefit. The county may
contract with outside parties to administer or offer this
benefit. The cost of offering this benefit shall be borne by
the participants in the benefit; however, the county may
absorb incidental and normal costs, including, but not limited
to, staff time, information technology, meeting space, or
minor administrative costs.
(c) The county shall create or cause to be created a
benefit plan document, which shall have, at a minimum, an
overview of the costs for participants under the plan, the
name of the administrator of the plan, an overview of the
benefits of the plan, and all options allowed under the plan.
(d) The county shall distribute the plan document to
participants or possible participants as well as to the Public
Pension Division of the Department of Insurance by February 1
of each year. The Public Pension Division of the Department of
Insurance shall review the plan document to determine whether

SB3683 - 3 - LRB103 39183 RPS 69329 b
the plan document represents best practices. If the Public
Pension Division of the Department of Insurance determines
that an aspect of the plan document does not represent best
practices, the Public Pension Division of the Department of
Insurance shall inform the county and the employees of the
county covered under this Section. The Public Pension Division
of the Department of Insurance shall create an annual report
of any plan that does not use best practices. The Department of
Insurance shall adopt rules to implement and administer this
Section. The Public Pension Division of the Department of
Insurance may charge fees to the county to administer this
Section. The Public Pension Division of the Department of
Insurance may charge the extra costs associated with the
county's failure to use best practices directly to the county.
(40 ILCS 5/10-110 new)
Sec. 10-110. Automatic enrollment in optional savings
plan.
(a) On and after January 1, 2025, the District must
provide a federal tax qualified pre-tax retirement plan
otherwise allowed by State and federal law for each employee.
Any employee who becomes an employee on or after January 1,
2025 must be automatically enrolled in the federal tax
qualified pre-tax retirement plan established under this
Section; however, an employee may opt out of the federal tax
qualified pre-tax retirement plan, as provided in this

SB3683 - 4 - LRB103 39183 RPS 69329 b
Section.
(b) If another option is not chosen by the employee,
collective bargaining unit, or a retirement savings committee,
the default employee contribution to this account shall be 2%
of salary. Any employee may terminate participation in the
benefit at any time, subject to any restrictions posted within
the plan document. The plan shall be designed to receive
employee contributions, but may also receive employer
contributions based on the decision of the District. The
administration of this benefit shall be a permissive subject
of collective bargaining; however, if the District offers the
same benefit to employees under multiple collective bargaining
units, then the District may create a retirement savings
committee that shall include one representative appointed by
each collective bargaining unit and one representative
appointed by the president of the county. If there is a
retirement savings committee, the committee shall approve of
the administration of this benefit by affirmative vote prior
to the creation or change of the benefit. The District may
contract with outside parties to administer or offer this
benefit. The cost of offering this benefit shall be borne by
the participants in the benefit; however, the District may
absorb incidental and normal costs, including, but not limited
to, staff time, information technology, meeting space, or
minor administrative costs.
(c) The District shall create or cause to be created a

SB3683 - 5 - LRB103 39183 RPS 69329 b
benefit plan document, which shall have, at a minimum, an
overview of the costs for participants under the plan, the
name of the administrator of the plan, an overview of the
benefits of the plan, and all options allowed under the plan.
(d) The District shall distribute the plan document to
participants or possible participants as well as to the Public
Pension Division of the Department of Insurance by February 1
of each year. The Public Pension Division of the Department of
Insurance shall review the plan document to determine whether
the plan document represents best practices. If the Public
Pension Division of the Department of Insurance determines
that an aspect of the plan document does not represent best
practices, the Public Pension Division of the Department of
Insurance shall inform the District and the employees of the
District covered under this Section. The Public Pension
Division of the Department of Insurance shall create an annual
report of any plan that does not use best practices. The
Department of Insurance shall adopt rules to implement and
administer this Section. The Public Pension Division of the
Department of Insurance may charge fees to the District to
administer this Section. The Public Pension Division of the
Department of Insurance may charge the extra costs associated
with the District's failure to use best practices directly to
the District.
(40 ILCS 5/13-314.5 new)

SB3683 - 6 - LRB103 39183 RPS 69329 b
Sec. 13-314.5. Automatic enrollment in optional savings
plan.
(a) On and after January 1, 2025, the Employer must
provide a federal tax qualified pre-tax retirement plan
otherwise allowed by State and federal law for each employee.
Any employee who becomes an employee on or after January 1,
2025 must be automatically enrolled in the federal tax
qualified pre-tax retirement plan established under this
Section; however, an employee may opt out of the federal tax
qualified pre-tax retirement plan, as provided in this
Section.
(b) If another option is not chosen by the employee,
collective bargaining unit, or a retirement savings committee,
the default employee contribution to this account shall be 2%
of salary. Any employee may terminate participation in the
benefit at any time, subject to any restrictions posted within
the plan document. The plan shall be designed to receive
employee contributions, but may also receive employer
contributions based on the decision of the Employer. The
administration of this benefit shall be a permissive subject
of collective bargaining; however, if the Employer offers the
same benefit to employees under multiple collective bargaining
units, then the Employer may create a retirement savings
committee that shall include one representative appointed by
each collective bargaining unit and one representative
appointed by the President of the Metropolitan Water

SB3683 - 7 - LRB103 39183 RPS 69329 b
Reclamation District Board of Commissioners. If there is a
retirement savings committee, the committee shall approve of
the administration of this benefit by affirmative vote prior
to the creation or change of the benefit. The Employer may
contract with outside parties to administer or offer this
benefit. The cost of offering this benefit shall be borne by
the participants in the benefit; however, the Employer may
absorb incidental and normal costs, including, but not limited
to, staff time, information technology, meeting space, or
minor administrative costs.
(c) The Employer shall create or cause to be created a
benefit plan document, which shall have, at a minimum, an
overview of the costs for participants under the plan, the
name of the administrator of the plan, an overview of the
benefits of the plan, and all options allowed under the plan.
(d) The Employer shall distribute the plan document to
participants or possible participants as well as to the Public
Pension Division of the Department of Insurance by February 1
of each year. The Public Pension Division of the Department of
Insurance shall review the plan document to determine whether
the plan document represents best practices. If the Public
Pension Division of the Department of Insurance determines
that an aspect of the plan document does not represent best
practices, the Public Pension Division of the Department of
Insurance shall inform the Employer and the employees covered
under this Section. The Public Pension Division of the

SB3683 - 8 - LRB103 39183 RPS 69329 b
Department of Insurance shall create an annual report of any
plan that does not use best practices. The Department of
Insurance shall adopt rules to implement and administer this
Section. The Public Pension Division of the Department of
Insurance may charge fees to the Employer to administer this
Section. The Public Pension Division of the Department of
Insurance may charge the extra costs associated with the
Employer's failure to use best practices directly to the
Employer.
Section 90. The State Mandates Act is amended by adding
Section 8.48 as follows:
(30 ILCS 805/8.48 new)
Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.