Bill Text: IL SB3806 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: 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 Chicago 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 Chicago Teacher Article on the effective date of the amendatory Act. Effective January 1, 2021.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3806 Detail]

Download: Illinois-2019-SB3806-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3806 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 Chicago 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 Chicago Teacher Article on the effective date of the amendatory Act. Effective January 1, 2021.
LRB101 20290 RPS 69832 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB3806 LRB101 20290 RPS 69832 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 changing
Section 24-105.2 as follows:
(40 ILCS 5/24-105.2)
Sec. 24-105.2. Automatic enrollment for certain members.
The Department of Central Management Services shall
automatically enroll in the State Employees Deferred
Compensation Plan any employee who, on or after July 1, 2020 (6
months after the effective date of Public Act 101-277) this
amendatory Act of the 101st General Assembly, first becomes a
member or participant of a retirement system created under
Article 2, 14, or 18 and shall automatically enroll in the
State Employees Deferred Compensation Plan any employee who is
a member under a pension fund created under Article 17,
regardless of when the employee first became a member under
Article 17. An employee automatically enrolled under this
Section shall have 3% of his or her pre-tax gross compensation
for each compensation period deferred into his or her deferred
compensation account.
An employee shall have 30 days from the start date of
employment to elect to not participate in the deferred

SB3806 - 2 - LRB101 20290 RPS 69832 b
compensation plan or to elect to increase or reduce the amount
of pre-tax gross compensation deferred. An employee shall be
automatically enrolled in the Plan beginning the first day of
the pay period following the employee's thirtieth day of
employment or the pay period following the effective date of
this amendatory Act of the 101st General Assembly if the
employee is a member under Article 17 on the effective date of
this amendatory Act of the 101st General Assembly. An employee
who has been automatically enrolled in the Plan may elect,
within 90 days of enrollment, to withdraw from the Plan and
receive a refund of amounts deferred. An employee making such
an election shall forfeit all employer matching contributions,
if any, made prior to the election. Any refunded amount shall
be included in the employee's gross income for the taxable year
in which the refund is issued.
(Source: P.A. 101-277, eff. 1-1-20.)
Section 99. Effective date. This Act takes effect January
1, 2021.