Rep. Robert Martwick

Filed: 3/26/2019

 

 


 

 


 
10100HB3082ham001LRB101 10487 RPS 58563 a

1
AMENDMENT TO HOUSE BILL 3082

2    AMENDMENT NO. ______. Amend House Bill 3082 by replacing
3everything after the enacting clause as follows:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 24-105 and by adding Section 24-105.2 as
6follows:
 
7    (40 ILCS 5/24-105)  (from Ch. 108 1/2, par. 24-105)
8    Sec. 24-105. The State Employees Deferred Compensation
9Plan shall be administered by the Department of Central
10Management Services subject to the general supervision of the
11Illinois State Board of Investment. Participation in such plan
12shall be by a specific written agreement between each such
13employee and the State which agreement shall provide for the
14deferral of such amount of compensation as requested by the
15employee. With each distribution of compensation to a
16participating employee, the employee shall receive a

 

 

10100HB3082ham001- 2 -LRB101 10487 RPS 58563 a

1memorandum of the amount by which his gross compensation for
2the period involved is reduced by reason of the deferment of
3compensation, which amount shall not be included as a part of
4his gross compensation as to that period.
5    Funds retained by the State as deferred compensation
6pursuant to a written deferred compensation agreement between
7the State and participating employees, may be invested in such
8investments as are deemed acceptable by the Illinois State
9Board of Investment including, but not limited to, life
10insurance or annuity contracts or mutual funds. All such
11insurance, annuities, mutual funds, or other such investments
12utilized under this Plan shall have been reviewed and selected
13by the Board based on a competitive bidding process as
14established by such specifications and considerations as are
15deemed appropriate by the Board. Nothing in this Section should
16be construed as requiring a limitation on the number and
17variety of insurance, annuity or mutual fund contracts which
18may be selected as a result of this bidding process. The State
19Board of Investment may also invest any funds retained by the
20State pursuant to a written deferred compensation agreement
21between the State and participating employees in share accounts
22or share certificate accounts of State or federal credit
23unions, the accounts of which are insured as required by The
24Illinois Credit Union Act or the Federal Credit Union Act, as
25applicable. If a participating employee fails to direct the
26investment of amounts deferred into the various investment

 

 

10100HB3082ham001- 3 -LRB101 10487 RPS 58563 a

1options offered to the participant, the amounts deferred shall
2be invested in the Plan's default investment fund and the
3investment shall be deemed to have been made at the
4participant's investment direction. Any income and gain
5resulting from the investment of a deferred compensation
6account may be paid to the participant as additional
7compensation for continued service during the period of
8participation or be used in part for administrative expenses,
9all in accordance with the plan. Such investments and payments
10shall not be construed to be prohibited uses of the general
11assets of the State.
12(Source: P.A. 82-789.)
 
13    (40 ILCS 5/24-105.2 new)
14    Sec. 24-105.2. Automatic enrollment for certain members.
15The Department of Central Management Services shall
16automatically enroll in the State Employees Deferred
17Compensation Plan any employee who, on or after 6 months after
18the effective date of this amendatory Act of the 101st General
19Assembly, first becomes a member or participant of a retirement
20system created under Article 2, 14, or 18. An employee
21automatically enrolled under this Section shall have 3% of his
22or her pre-tax gross compensation for each compensation period
23deferred into his or her deferred compensation account.
24    An employee shall have 30 days from the start date of
25employment to elect to not participate in the deferred

 

 

10100HB3082ham001- 4 -LRB101 10487 RPS 58563 a

1compensation plan or to elect to increase or reduce the amount
2of pre-tax gross compensation deferred. An employee shall be
3automatically enrolled in the Plan beginning the first day of
4the pay period following the employee's thirtieth day of
5employment. An employee who has been automatically enrolled in
6the Plan may elect, within 90 days of enrollment, to withdraw
7from the Plan and receive a refund of amounts deferred. An
8employee making such an election shall forfeit all employer
9matching contributions, if any, made prior to the election. Any
10refunded amount shall be included in the employee's gross
11income for the taxable year in which the refund is issued.".