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Public Act 101-0277


 

Public Act 0277 101ST GENERAL ASSEMBLY

  
  
  

 


 
Public Act 101-0277
 
HB3082 EnrolledLRB101 10487 RPS 55593 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 and by adding Section 24-105.2 as follows:
 
    (40 ILCS 5/24-105)  (from Ch. 108 1/2, par. 24-105)
    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
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
compensation, which amount shall not be included as a part of
his gross compensation as to that period.
    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
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
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
assets of the State.
(Source: P.A. 82-789.)
 
    (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.

Effective Date: 1/1/2020