101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3019

 

Introduced 2/5/2020, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-202

    Amends the State Universities Article of the Illinois Pension Code. Provides that as soon as practicable after the effective date of the amendatory Act, the optional defined contribution plan shall provide for an eligible automatic contribution arrangement that permits a withdrawal of default elective contributions in accordance with a specified provision of the Internal Revenue Code of 1986, as amended, and United States Department of Treasury regulations promulgated thereunder. Changes references from "defined contribution benefit" to "defined contribution plan". Effective immediately.


LRB101 19667 RPS 69157 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3019LRB101 19667 RPS 69157 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 15-202 as follows:
 
6    (40 ILCS 5/15-202)
7    Sec. 15-202. Optional defined contribution plan benefit.
8As soon as practicable after the effective date of this
9amendatory Act of the 100th General Assembly, the System shall
10offer a defined contribution plan benefit to active members of
11the System. The defined contribution plan benefit shall be an
12optional benefit to any member who chooses to participate. As
13soon as practicable after the effective date of this amendatory
14Act of the 101st General Assembly, the defined contribution
15plan shall provide for an eligible automatic contribution
16arrangement that permits a withdrawal of default elective
17contributions in accordance with Section 414(w) of the Internal
18Revenue Code of 1986, as amended, and United States Department
19of Treasury regulations promulgated thereunder. The defined
20contribution plan benefit shall collect optional employee and
21optional employer contributions into an account and shall offer
22investment options to the participant. The plan benefit under
23this Section shall be operated in full compliance with any

 

 

SB3019- 2 -LRB101 19667 RPS 69157 b

1applicable State and federal laws, and the System shall utilize
2generally accepted practices in creating and maintaining the
3plan benefit for the best interest of the participants. The
4System may use funds from the employee and employer
5contributions to defray any and all costs of creating and
6maintaining the plan benefit. The System shall produce an
7annual report on the participation in the plan benefit and
8shall make the report public.
9(Source: P.A. 100-769, eff. 8-10-18.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.