Bill Text: IL SB3612 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Chicago Police, Chicago Firefighter, and Chicago Municipal Articles of the Illinois Pension Code. Provides that a person who becomes a member on or after January 1, 2025 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. Provides that a member subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired. Provides that if another option is not chosen by the member, the default employee contribution to the account shall be 3% of the member's salary. Provides that the plan administrator may automatically increase members contributions by no more than 1% per year, and a member may choose to opt out of the automatic increases. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-09 - Referred to Assignments [SB3612 Detail]

Download: Illinois-2023-SB3612-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3612 Introduced 2/9/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-239 new
40 ILCS 5/6-231 new
40 ILCS 5/8-244.5 new
Amends the Chicago Police, Chicago Firefighter, and Chicago Municipal Articles of the Illinois Pension Code. Provides that a person who becomes a member on or after January 1, 2025 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. Provides that a member subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired. Provides that if another option is not chosen by the member, the default employee contribution to the account shall be 3% of the member's salary. Provides that the plan administrator may automatically increase members contributions by no more than 1% per year, and a member may choose to opt out of the automatic increases. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB103 39182 RPS 69328 b
A BILL FOR
SB3612 LRB103 39182 RPS 69328 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by adding
Sections 5-239, 6-231 and 8-244.5 as follows:
(40 ILCS 5/5-239 new)
Sec. 5-239. Automatic enrollment into a tax qualified
retirement plan. Beginning on January 1, 2025, all persons who
become policemen on or after January 1, 2025 shall be
automatically enrolled into a federal tax qualified pre-tax
retirement plan that is otherwise allowed by State and federal
law. A policeman subject to automatic enrollment shall have
the option to opt out of the plan and shall be informed of that
option within 30 days after being hired.
If another option is not chosen by the policeman, the
default employee contribution to the account shall be 3% of
his or her salary. The plan administrator may automatically
increase members contributions by no more than 1% per year,
and a policeman may choose to opt out of the automatic
increases.
(40 ILCS 5/6-231 new)
Sec. 6-231. Automatic enrollment into a tax qualified

SB3612 - 2 - LRB103 39182 RPS 69328 b
retirement plan. Beginning on January 1, 2025, all persons who
become firemen on or after January 1, 2025 shall be
automatically enrolled into a federal tax qualified pre-tax
retirement plan that is otherwise allowed by State and federal
law. A fireman subject to automatic enrollment shall have the
option to opt out of the plan and shall be informed of that
option within 30 days after being hired.
If another option is not chosen by the fireman, the
default employee contribution to the account shall be 3% of
his or her salary. The plan administrator may automatically
increase firemen's contributions by no more than 1% per year,
and a fireman may choose to opt out of the automatic increases.
(40 ILCS 5/8-244.5 new)
Sec. 8-244.5. Automatic enrollment into a tax qualified
retirement plan. Beginning on January 1, 2025, all persons who
become employees on or after January 1, 2025 shall be
automatically enrolled into a federal tax qualified pre-tax
retirement plan that is otherwise allowed by State and federal
law. An employee subject to automatic enrollment shall have
the option to opt out of the plan and shall be informed of that
option within 30 days after being hired.
If another option is not chosen by the employee, the
default employee contribution to the account shall be 3% of
his or her salary. The plan administrator may automatically
increase employees' contributions by no more than 1% per year,

SB3612 - 3 - LRB103 39182 RPS 69328 b
and an employee may choose to opt out of the automatic
increases.