SB3804 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3804

 

Introduced 2/14/2020, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/24-105.2

    Amends the Deferred Compensation Article of the Illinois Pension Code. Provides that the Department of Central Management Services shall automatically enroll in the State Employees Deferred Compensation Plan any employee who is a member under the Downstate Teacher Article, regardless of when the employee first became a member under that Article. Provides that an employee shall be automatically enrolled beginning the first day of the pay period following the effective date if the employee is a member under the Downstate Teacher Article on the effective date of the amendatory Act. Effective January 1, 2021.


LRB101 20293 RPS 69835 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3804LRB101 20293 RPS 69835 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 24-105.2 as follows:
 
6    (40 ILCS 5/24-105.2)
7    Sec. 24-105.2. Automatic enrollment for certain members.
8The 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 Public Act 101-277) this
12amendatory Act of the 101st General Assembly, first becomes a
13member or participant of a retirement system created under
14Article 2, 14, or 18 and shall automatically enroll in the
15State Employees Deferred Compensation Plan any employee who is
16a member under a retirement system created under Article 16,
17regardless of when the employee first became a member under
18Article 16. An employee automatically enrolled under this
19Section shall have 3% of his or her pre-tax gross compensation
20for each compensation period deferred into his or her deferred
21compensation account.
22    An employee shall have 30 days from the start date of
23employment to elect to not participate in the deferred

 

 

SB3804- 2 -LRB101 20293 RPS 69835 b

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 or the pay period following the effective date of
6this amendatory Act of the 101st General Assembly if the
7employee is a member under Article 16 on the effective date of
8this amendatory Act of the 101st General Assembly. An employee
9who has been automatically enrolled in the Plan may elect,
10within 90 days of enrollment, to withdraw from the Plan and
11receive a refund of amounts deferred. An employee making such
12an election shall forfeit all employer matching contributions,
13if any, made prior to the election. Any refunded amount shall
14be included in the employee's gross income for the taxable year
15in which the refund is issued.
16(Source: P.A. 101-277, eff. 1-1-20.)
 
17    Section 99. Effective date. This Act takes effect January
181, 2021.