Illinois General Assembly - Full Text of SB1675
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB1675  102nd General Assembly

SB1675enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB1675 EnrolledLRB102 14094 RPS 19446 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
5changing Section 24-105.2 as follows:
 
6    (40 ILCS 5/24-105.2)
7    Sec. 24-105.2. Automatic enrollment for certain employees
8members. The Department of Central Management Services shall
9automatically enroll in the State Employees Deferred
10Compensation Plan any employee who, on or after July 1, 2020, 6
11months after the effective date of this amendatory Act of the
12101st General Assembly, first becomes an active a member or
13participant of a retirement system created under Article 2,
1414, or 18. Any agency with employees subject to automatic
15enrollment must systematically provide the employee data
16necessary for enrollment to the Department of Central
17Management Services or its designee. An employee automatically
18enrolled under this Section shall have 3% of his or her pre-tax
19gross compensation for each compensation period deferred into
20his or her deferred compensation account. The Board may
21increase the default percentage amount of compensation
22deferred into employee accounts.
23    An employee shall have 30 days from the start date of

 

 

SB1675 Enrolled- 2 -LRB102 14094 RPS 19446 b

1employment to elect to not participate in the deferred
2compensation plan or to elect to increase or reduce the amount
3of pre-tax gross compensation deferred. An employee shall be
4automatically enrolled in the Plan beginning the first day of
5the pay period following the employee's thirtieth day of
6employment. An employee who has been automatically enrolled in
7the Plan may elect, within 90 days of enrollment, to withdraw
8from the Plan and receive a refund of amounts deferred, plus or
9minus any applicable earnings, investment fees, and
10administrative fees. An employee making such an election shall
11forfeit all employer matching contributions, if any, made
12prior to the election. Any refunded amount shall be included
13in the employee's gross income for the taxable year in which
14the refund is issued.
15    As soon as practicable, the Board shall establish annual,
16automatic increases to employee contribution rates for
17employees who are automatically enrolled in the Plan pursuant
18to this Section. The amount of automatic annual increases in
19any 12-month period shall not exceed 1% of compensation.
20Employees may elect to not receive automatic annual increases
21in a manner described by the Board.
22(Source: P.A. 101-277, eff. 1-1-20.)
 
23    Section 99. Effective date. This Act takes effect July 1,
242021.