HB3082 EnrolledLRB101 10487 RPS 55593 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 24-105 and by adding Section 24-105.2 as follows:
 
6    (40 ILCS 5/24-105)  (from Ch. 108 1/2, par. 24-105)
7    Sec. 24-105. The State Employees Deferred Compensation
8Plan shall be administered by the Department of Central
9Management Services subject to the general supervision of the
10Illinois State Board of Investment. Participation in such plan
11shall be by a specific written agreement between each such
12employee and the State which agreement shall provide for the
13deferral of such amount of compensation as requested by the
14employee. With each distribution of compensation to a
15participating employee, the employee shall receive a
16memorandum of the amount by which his gross compensation for
17the period involved is reduced by reason of the deferment of
18compensation, which amount shall not be included as a part of
19his gross compensation as to that period.
20    Funds retained by the State as deferred compensation
21pursuant to a written deferred compensation agreement between
22the State and participating employees, may be invested in such
23investments as are deemed acceptable by the Illinois State

 

 

HB3082 Enrolled- 2 -LRB101 10487 RPS 55593 b

1Board of Investment including, but not limited to, life
2insurance or annuity contracts or mutual funds. All such
3insurance, annuities, mutual funds, or other such investments
4utilized under this Plan shall have been reviewed and selected
5by the Board based on a competitive bidding process as
6established by such specifications and considerations as are
7deemed appropriate by the Board. Nothing in this Section should
8be construed as requiring a limitation on the number and
9variety of insurance, annuity or mutual fund contracts which
10may be selected as a result of this bidding process. The State
11Board of Investment may also invest any funds retained by the
12State pursuant to a written deferred compensation agreement
13between the State and participating employees in share accounts
14or share certificate accounts of State or federal credit
15unions, the accounts of which are insured as required by The
16Illinois Credit Union Act or the Federal Credit Union Act, as
17applicable. If a participating employee fails to direct the
18investment of amounts deferred into the various investment
19options offered to the participant, the amounts deferred shall
20be invested in the Plan's default investment fund and the
21investment shall be deemed to have been made at the
22participant's investment direction. Any income and gain
23resulting from the investment of a deferred compensation
24account may be paid to the participant as additional
25compensation for continued service during the period of
26participation or be used in part for administrative expenses,

 

 

HB3082 Enrolled- 3 -LRB101 10487 RPS 55593 b

1all in accordance with the plan. Such investments and payments
2shall not be construed to be prohibited uses of the general
3assets of the State.
4(Source: P.A. 82-789.)
 
5    (40 ILCS 5/24-105.2 new)
6    Sec. 24-105.2. Automatic enrollment for certain members.
7The Department of Central Management Services shall
8automatically enroll in the State Employees Deferred
9Compensation Plan any employee who, on or after 6 months after
10the effective date of this amendatory Act of the 101st General
11Assembly, first becomes a member or participant of a retirement
12system created under Article 2, 14, or 18. An employee
13automatically enrolled under this Section shall have 3% of his
14or her pre-tax gross compensation for each compensation period
15deferred into his or her deferred compensation account.
16    An employee shall have 30 days from the start date of
17employment to elect to not participate in the deferred
18compensation plan or to elect to increase or reduce the amount
19of pre-tax gross compensation deferred. An employee shall be
20automatically enrolled in the Plan beginning the first day of
21the pay period following the employee's thirtieth day of
22employment. An employee who has been automatically enrolled in
23the Plan may elect, within 90 days of enrollment, to withdraw
24from the Plan and receive a refund of amounts deferred. An
25employee making such an election shall forfeit all employer

 

 

HB3082 Enrolled- 4 -LRB101 10487 RPS 55593 b

1matching contributions, if any, made prior to the election. Any
2refunded amount shall be included in the employee's gross
3income for the taxable year in which the refund is issued.